Most everyone know when to increase their AdWords budget, but many do not know when they should start to lower their AdWords budget. Here are a few tips to consider as you review your own AdWords budget and decide if you should keep it the same or lower your budget.
1. If your business is seasonal and you have a historical market drop in sales at specific times of the year, as you approach those slow sales or booking times, you should equally drop your AdWords budget. There is no point in continuing to spend at the same level as you would in peak selling times.
2. If you do not have historical data on sales and bookings then you should watch for flat periods of activity. AdWords will try to spend all the money that you allow it even if you get no sales conversions. If sales are flat for a week and you are at your same budget, first review your keywords, cost per click, and create new ad text. If you have not generated conversions in the second week, I would strongly consider pulling back on your budget especially in December. There are simply some businesses that will sell strongly in the holiday season and others that will not. Your product or services may be one that would be best served by keeping a toehold in now and bumping your budget back up in January.
I’ll talk on Friday on when you should increase your AdWords budget.