ADWORDS - HOW TO REASONABLY PLAN THIS TYPE OF ADVERTISEMENT? - SERVICE BUSINESS - 2021
AdWords advertising - how to plan it and not go bankrupt?
Planning an advertising budget is a challenge especially when funds are small. It is also not easy when their amount is unlimited. Let's consider how to plan an AdWords campaign so that it will bring results and not lead us to bankruptcy.
Internet business owners will surely come to a point at some point in their activity when it is impossible to promote the site in any other way than by setting up an advertising campaign. Tools such as AdWords usually come to the rescue, thanks to which publishing ads is simple and does not take much time. Of course, you have to pay for an advertising campaign. While this is not a problem with an unlimited promotional budget, when you have limited resources, you need to think about how you can publish your ads without risking bankruptcy.
Estimating expenses for an AdWords campaign
AdWords allows you to set your daily budget and change it at any time. When deciding to advertise under AdWords, the user is always asked to enter the amount that he wants to spend each day on promotional activities. It is determined, inter alia, based on advertising purposes.
For example, considering a price per click of 10 cents for a target of 100 clicks per day, a user's daily budget is $ 10. Using a monthly budget, you can calculate your daily budget by dividing the total promotion amount for the month by the average number of days in the month, 30.4. For example, if you spend $ 304 a month on promotional activities, to get your daily budget, divide 304 by 30.4, the number of days in a month. The result - PLN 10 - is the daily budget.
Google AdWords also allows you to create a shared budget. This will be the total cost of the promotion, split across multiple campaigns. It is especially useful when the user does not have the opportunity or time to monitor expenses related to several campaigns at the same time. When creating a joint budget, the appropriate amounts are automatically planned and directed to different campaigns to maximize the return on investment. It can look like this: planned expenses for promotional activities in the amount of PLN 300 are divided between two campaigns (each one is PLN 150). In the event that one of them does not achieve its intended goal and the amount of PLN 110 has been spent so far, AdWords will transfer the remaining PLN 40 to the second campaign to maximize the overall effects.
Google AdWords - how to manage your daily budget?
To set a daily budget in AdWords, you need to log in to your account on the Google AdWords website, find the Settings tab, Campaigns, and choose the promotion method that best suits your needs. There are three types of promotional activity to choose from here: Search Network with Display Network Extension, Search Network Only, and Video. Then, on the page titled Choose Campaign Settings, go to the Budget section and enter the individual daily cost of the campaign. Finally, you just need to save the changes by clicking the Save and continue button.
It is worth remembering that once a budget is established, it is not a constant value. You should therefore check your account regularly to avoid situations when the campaign runs out of budget too quickly or funds are carried over to the next period. In addition, too low amounts for promotion may mean fewer clicks, and too high amounts - lead to higher costs. Fortunately, you can track the spending status of your campaign. In the Campaigns tab, you can see which of them are marked as Limited by budget.
How can I avoid running out of my AdWords budget?
In the event that the funds allocated to the promotion are not very large, the ads may become invisible or not be displayed very often. It seems wise to limit or disable campaigns, or to increase spending. However, this is not a good move as it may result in increased costs that the user cannot afford or the loss of clicks already received.
There are strategies that allow you to better manage your budget. These include: lowering the cost-per-click in campaigns that are limited by budget, automatic bidding, using standard display.
Contrary to appearances, reducing your bids in campaigns that are limited by budget can bring you significant benefits, such as improving the number of clicks you receive. In addition, doing so may reduce the average cost of clicks on your ad, and as a result, your budget will last longer and generate more clicks.
It's a good idea to allow AdWords to set your own bids automatically. In this case, it will adjust your bids to your maximum CPC, which is cost-per-click, keywords, or placements, to stay within your planned daily budget. This is the simplest bidding method as it only requires you to set a daily budget. Other activities related to the promotional campaign are adjusted directly by AdWords. The great advantage of such a solution is that at any time during the promotion, you can return to the independent management of advertising expenses.
Note, however, that this option is not available for video campaigns, and when you select the following settings: Only Display Network with the Interaction with Content goal, Install the Mobile App, and Interact with the Mobile App, and when adjusting day and time bids.
In turn, changing the display rule from accelerated to standard will bring additional benefits. In the case of the former, it very often happens that the expenses planned for the entire day are used up in the morning. Standard delivery is more optimized as your ads are displayed evenly throughout the day. However, you should know that standard display is the default setting for manual bidding, and accelerated display is not possible.
There is one more way to reduce your ad spend. For those campaigns that regularly exhaust their daily budget and have the ability to generate more clicks, Google AdWords provides information on the recommended daily budget. You can use these hints and estimate how much this new spending plan can help you achieve your goals.
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