How to manage limited budgets in Google Ads
Over time, campaigns can outgrow their daily budget limits and advertisers are not always ready to raise their budgets further to make sure that Google will show all ads throughout the day. Lost impressions, lost clicks and lost conversions are typically the result – essentially, they are missed opportunities for the advertiser.
Limited Budgets - Example from one of our clients
Take this example from one of our clients: Our client sells organic almonds, and runs an AdWords campaign for said product that is limited to a daily budget of 200€. Although the client was able to participate in 80% of all relevant auctions on average before Adference optimization, the campaign frequently ran out of budget before the end of the day, with the client missing out on about 20% of searches that undoubtedly would have lead to more clicks, more impressions and ultimately, more sales of their product.
Why not advise our client to increase the budget? Sometimes, AdWords budgets are simply capped for reasons that have little to do with campaign performance. Improving advertising efficiency by shifting budgets, changing delivery methods, adding more negative keywords, device targeting and location targeting are measures that can help to free up parts of the set budget in these situations.
However, even campaigns that are fully optimized in these respects can be on the brink of their budget limits every day. For these campaigns, Adference developed a mechanism that detects campaigns that reach their daily budget limit regularly. In the case of limited budgets, our algorithms try to find the bid that will show your ads most often while keeping your conversion rate stable.
Adference Bid Management
Normally, Adference Bid Management drives up conversions as much as possible. If enough budget is available and it seems like a promising move, it will increase bids for successful products and keywords to collect even more conversions. In the limited budget mode however, Adference Bid Management takes the liberty to select lower bids if they keep the conversion rate constant, but help you to win more auctions over the course of the day. This way, it prevents your budget from being used up by mid afternoon.
Ideally, the mechanism will allow you to show your ads more frequently while keeping expenditures at the same level. Looking at the development of our client’s campaigns from the example above, now that Adference Bid Management intervenes, our client is able to participate in all auctions relevant to the campaign. This helped our client to increase the number of conversions, as more people clicking the ad lead to more people buying the product. Since the campaign budget remained limited to 200€ while the number of sales increased, costs per sale went down.