Often in strange economic times a business may need to trim back Google Ads budgets. We are definitely in one of those strange periods where interest in services appears to be high, but customers are not moving into conversions.
The stock market and drama within the federal government have created a climate of “wait and see”. But advertisers are working to fiercely compete in Google Ads for the available clicks even if customers are not moving to buy.
If and when you have to cut back your advertising budget; do it smartly based on conversions and value to your business.
First, sort your data for a longer period than 30 days. I will usually use a 6 month period. Note the conversions of each campaign to the total as a percentage. Then decide on the new total 30 day ad spend you can live with. Divide that number by 30.4 to arrive at your daily ad spend budget.
Multiply your daily budget by the conversion percent of each ad group to arrive at your new campaign budget. Then look to do a reality check. If you’ve got remarketing at less than $10 a day Google really will not serve that program. If you have some campaigns at $10 or $15 a day but your average cost per click is $5, you will get very little activity for that program.
Instead consider grouping some of those low budget items into a shared budget to try to help Google be able to serve your programs that you have put on a diet.
Remember, big changes to your budget will take about 7 to 14 days for Google to adjust to again. Be patient to see results at your new lower budget.
