When it comes to Google AdWords, decisions you make about how much you should spend should all revolve around statistical data. Never make a decision about your ad spend based on feel-good ideas or what you “think” you should do. The biggest thing I tell clients to remember is that:
AdWords will spend every penny if you allow it to do so.
For many clients whose business is struggling in today’s economy or have been affected by Penguin and Panda updates, it boils down to how much should I spend?
Here are several tips and talking point I review with my own AdWords clients about budget.
1. Never spend more than you really can afford and base your initial budget based on what you are comfortable spending without a return. Don’t go in debt to drive traffic!
2. Make budget decisions based on data. Use conversion tracking, business research, Google Analytics data review to base your budget changes.
3. Allot your ad spend where it is generating a return or where you have made a decision your focus is for traffic not for conversions.
4. Hold out some of your budget for a mature program for testing to see if you can uncover additional revenue areas. Test new markets but be realistic in your ad spend, limit your testing, and evaluate the return.
5. If money is tight, look to advertise only in the areas where you are getting sales. Don’t serve ads nationwide and in Canada if when you review where you have shipped goods in the last 90 days and only three states are involved, rather serve ads to those three states and then when money is not so tight expand your exposure.
My rule has always been – own your city, own your state, own your region, then own the nation!
If you are looking for an AdWords Certified Partner to set up and manage your AdWords account, I invite you to check our our service offerings and fee schedule.