PPC Budget Limiting Success?

[devonkrusich]

Does a higher budget mean that you will have more success? Obviously you will have more clicks - but does it equal higher conversion percentages? We have been running Adwords for several months with a small monthly budget of $300-500/month. We always monitor our campaigns and we use different techniques from all the major PPC experts that we can find. Our results are mixed - we seem to make a little profit from these campaigns. We have talked with another company in a similar field in retail ecommerce and they spend $6000/month and have much better results.

Is there something to be said for a bigger budget leading to more success on PPC?

[johnpingme]

Hi,
I'm doing ppc campaign with limited budget like u.I like to know if we spend more money,get maximum returns or not....I asked experts,they said it depends on your niche...

[adenclark]

Think about it this way:

Increase the budget for all of the keywords that are converting into sales. Use a small budget to test keywords and once you see a profit on any keyword, scale it up. Dont just increase your spend for the whole campaign.

[crudenbay]

Originally Posted by devonkrusich

Does a higher budget mean that you will have more success? Obviously you will have more clicks - but does it equal higher conversion percentages? We have been running Adwords for several months with a small monthly budget of $300-500/month. We always monitor our campaigns and we use different techniques from all the major PPC experts that we can find. Our results are mixed - we seem to make a little profit from these campaigns. We have talked with another company in a similar field in retail ecommerce and they spend $6000/month and have much better results.

Is there something to be said for a bigger budget leading to more success on PPC?

If you have more budget to spend you can do a couple of things:

1. Take the words that are converting and test moving them higher. The higher position might get you more traffic and more conversions, though the CPA of those conversions may well decline since the CPCs will be higher.

2. Next Look to expand your keywords. First thing I'd do is to run the other company's website through Spyfu.com and see what keywords they use that you don't. That might be an opportunity for you.

When you expand, go cautiously with your spend.

Cheers,
Frank