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Slashed Adwords Budget Half - Results 10% rather than 50%

Discussion in 'Adwords' started by Zakhar, Apr 27, 2017.

  1. Zakhar

    Zakhar Power Member

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    So I recently slashed my ad words budget, not changing any of my keywords, ad, ad funnel etc.

    I used to average 20 leads per day (12%) I decided to half my budget so you would assume I would get 10 leads on average but I'm now on 1-2 leads per day? How does this add up...

    Thanks,
     
  2. LucidMarketing

    LucidMarketing Regular Member

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    I'll assume certain things here because there's really not that much to go on. I assume that 12% you mention is the conversion rate. Therefore, you go an average of about 165 clicks per day. So the question is, is the conversion rate the same? I assume it is. Are the clicks halved and the CTR the same at the same ad position? This would be typical.

    Therefore, the answer is simple: 8-9 of your leads each day came from the second half of your budget. It's like the guy who said he knows he's wasting half his advertising budget, he just doesn't know which half. You found out it's the first half.
     
  3. Zakhar

    Zakhar Power Member

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    Conversion rate is not the same - went from 12% to 3% - you might be onto something with the timing... I have the ads set 24 hours a day but assumed as Google only charge me per click why not have it 24 hours a day? my keywords are very specific so when I halved my budget the clicks also halved which was fine but the rate of which someone leaves their details on my landing page went to 3% from 12%?

    Thanks for your feedback :)
     
  4. LucidMarketing

    LucidMarketing Regular Member

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    In my experience, a four-fold decrease is not typical. But there are many variables in play, some you have not addressed. Is your positioning the same? Ad position has an effect on conversion rates.

    There's also impression share. I would want 100% or close to it. By halving your budget, chances are your IS is half or even less. This is a very important metric that most don't know about or ignore. You see, if you give competitors a bigger share of the ad inventory, they are the ones more likely to get the conversion. If you show your ads half as much, you are giving them those conversions and that seems to be what is happening here. So increase your budget. You obviously are doing well so I don't know why you decreased it in the first place.

    You should also look into the auction insights report and see who your real competitors are. I'd be willing to bet you are losing your conversions to those with high impression shares. They are showing more often so the times you didn't, your clients simply went there because they didn't see your alternative. It sounds too that people may be searching multiple times and clicking many ads when they do. By seeing your competitors' more than once, they are in effect being sold twice by them whereas you are doing it just once and that is affecting your conversion rate (you are not top of mind since they land on your page just once), another reason to increase your budget. In fact if your IS was not in the 90% range, I'd increase the budget higher than you had it before. Your conversion rate may be higher still. At the very least, even if it's 10%, you'd have more leads each day because you'd get more clicks and taking some away from your competition.