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Increasing Daily Budget.

by b100
7 replies
  • PPC/SEM
    • |
I want to increase my budget in Adwords. Can you simply increase the budget to increase conversions?

The reason I ask, is last time I increased the budget, it seems like I started paying more per click. My competition probably increased their bid. I think it's possible that I made it worse for the both of us by simply making us pay more. However I am making a significant amount more in money so overall it's worth it.

Can any experts chime in? Does increasing the budget also increase cost per click? I'm pretty new to Adwords so I'm not sure what made the CPC go up (besides my obvious budget increase). I only increased it $10.

Also, some words of encouragement from me: Don't give up! Tweak your landing page a lot. You might needs a few hundred to experiment but hopefully by the end of the experiment you have found an equation that works for you.
#adwords #budget #daily #increasing
  • Profile picture of the author LucidWebMarketing
    Your budget is the maximum amount each day (actually, averaged over 30 days) that you are willing to spend. It has nothing to do with CPC so increasing budget should not increase your CPC.

    One way that could happen however is if your budget was too low. Say your CPC was $1 and your budget was just $2. The Adwords system will try to give you as much exposure as it can but you sure would not be helping it. That's not a lot of wiggle room. It would try to compensate and give show your ads when you would be paying less. Once you increase the budget, it has more room to breathe so your CPC could go up.

    I always tell clients to have a budget that will provide 100% coverage. So given the search volume for your keywords, knowing your CTR and the CPC, a simple calculation gives you your budget. Add 10-20% more to cover overages. If you set a lower budget than this calculation, expect a proportionally lesser number of clicks. As always, try to increase your QS and get more clicks for the same or lower cost.
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    • Profile picture of the author b100
      Originally Posted by LucidWebMarketing View Post

      Your budget is the maximum amount each day (actually, averaged over 30 days) that you are willing to spend. It has nothing to do with CPC so increasing budget should not increase your CPC.

      One way that could happen however is if your budget was too low. Say your CPC was $1 and your budget was just $2. The Adwords system will try to give you as much exposure as it can but you sure would not be helping it. That's not a lot of wiggle room. It would try to compensate and give show your ads when you would be paying less. Once you increase the budget, it has more room to breathe so your CPC could go up.

      I always tell clients to have a budget that will provide 100% coverage. So given the search volume for your keywords, knowing your CTR and the CPC, a simple calculation gives you your budget. Add 10-20% more to cover overages. If you set a lower budget than this calculation, expect a proportionally lesser number of clicks. As always, try to increase your QS and get more clicks for the same or lower cost.
      Thanks for your response. I recently added a couple of blog posts, a TOS, and privacy policy. I made a few tweaks here and there and by bounce rate went from 80% to 30%. I'm not sure if that contributes to QS but I will read more about it. Thanks again!

      On occasion I won't even reach my budget even by 50%. Does this mean competitors are bidding more or not enough people are searching for my keywords?
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      • Profile picture of the author Cosmit
        You have the average position metric that tells you which one it is. If you're between 1-2 average position, then you know your limiting factor is searches, not competitor. Competitor is only the limiting factor when your avg position is high, 3+
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      • Profile picture of the author LucidWebMarketing
        Originally Posted by b100 View Post

        On occasion I won't even reach my budget even by 50%. Does this mean competitors are bidding more or not enough people are searching for my keywords?
        Check your IS (Impression Share) and if, according to Google, it's because of ranking or budget or a bit of both.

        If it's mainly budget, then you don't have a high enough budget to reach all of the searchers for your keywords given your parameters (QS, CTR, CPC). Nothing to do with competitor bids. If you reach 50% of your budget, just by that metric, sounds like you are budgeting enough. But like I said, this can be easily determined by using the keyword tool to get the average monthly search volume and plug in your CTR and CPC numbers.

        If it's a ranking issue, your budget may be fine. You just are not showing your ads often enough because of external factors. One may be that your ranking - which is QS times your bid - is too low. That's why QS is important. Another is that there could be many competitors for those keywords. The system shows up to 11 ads on a page but it won't show the same ones all the time or in the same order, no matter what each advertiser's numbers are. It will mix things up. So if there are 22 advertisers, no matter your numbers, you may show only 50% of the time no matter what you do. Again, that's why QS is important. The system will show ads with QS of 10 more often than ads with a QS of 5 in this case because it's in Google's best interest: it maximizes their revenues.

        The biggest component of QS by the way is relative CTR of your ads to competitors at the position your ads show. Very little you do to your landing page will help as far as QS is concerned. But do improve your pages to improve user trust and conversions. You want visitors, especially if you pay for them, to take your most desired action, whether that's to buy or sign-up for something. A larger percentage that do is a good thing but separate from your ad campaign.
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  • Profile picture of the author MarkBlack6Adv
    Greetings,

    CPC is not affected by your maximum daily budget at all. Instead, it is strongly affected by the so-called "Quality score". This score is determined by how specific and close the keywords you chose are to your website contents. The higher your QS is, the less you will pay. Therefore, having a good quality score, which is generally 8/10+, is really important.

    MarkBlack6Adv
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  • Profile picture of the author smkghosh
    Why not try any other option?Besides traditional campaign,you can also run Youtube ads which has got great potential.
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    Author at Bengali Tech Blog Gorbitobangla

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  • Profile picture of the author victorrex
    Budget has nothing to do with cpc, if you have increased only 10$ then there is nothing to worry.


    I hope you are aware its not that what highest cpc you set adwords is going to use it, rather adwords used the cpc which is the bid avg.
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