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Google Budget Ideas/Suggestions

Level 2 sv
| ‎24-04-2012 01:50 AM
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Hello Adwords Community

 

I was wondering if any of you knew any reasons for sudden large increasese in the suggested budget (3x current budget). I know that Google calculates the recommended budget based on detailed campaign performance data over the previous 15 days, but are there any other factors that could contribute to this that i should be looking out for?  

 

Thanks in advance,

 

sv

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Re: Google Budget Ideas/Suggestions

| ‎24-04-2012 02:05 AM

Hi SV

 

As far as I'm aware the suggested budget will be solely based on your previous performance. My guess would be that your campaigns have hit their budget limits and so Google is recommending increasing them to get maximum exposure.

 

I don't believe they forecast and take into account future trends so it will all be based on your current spend performance.

 

Cheers

Kane

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Re: Google Budget Ideas/Suggestions

| ‎24-04-2012 02:56 AM
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Hi,

 

Impression Share can give you more information on how Google thinks about the bid, budget and Quality Score.  You need to look for a column called as "Lost IS(Budget)" under "Campaign" tab.  This might be hidden and you could use the "Customize Column" button to make it visible.  This column would show the % of estimated impressions you are missing due to your current budget.

 

Hope this helps.

 

Thanks,

Nimesh.

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Re: Google Budget Ideas/Suggestions

| ‎24-04-2012 06:08 AM
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Impression share also updates more frequently now (once per day).  If you monitor this metric you may or may not notice some flucuations.  To maximize potential, you should adjust your budget accordingly to take advantage of any additional ad impressions that become available.

 

Are you running display campaigns?  If so, perhaps there have been several additional sites, articles, content made available, thus expanding the reach of your campaigns.  Run some placement reports to see if any new sites are being targeted by your campaigns.

 

Google can also update, add, remove search partners  from their Search Network.  If your campaign is opted into the Search Network in addition to just Google search an expansion of search partners in your vertical could cause an influx of impressions.  Increase your budget and monitor your the distribution of impression/clicks going to each channel.  Watch for any upswings in either category.  You can do this by selecting Network (with search partners) from the Segment drop-down menu on the main campaign screen.

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Re: Google Budget Ideas/Suggestions

| ‎24-04-2012 06:17 AM

Hi sv,

 

I know that Google calculates the recommended budget based on detailed campaign performance data over the previous 15 days, but are there any other factors that could contribute to this that i should be looking out for?  

 

Yes there are other factors, listed below:


Recent campaign performance
Current campaign budget
Keyword list
Campaign targeting settings

 

As per Google notes:

 

Budget recommendations are based on keywords and determined by how many times your ad could've shown in total if you had a limitless budget. In other words, AdWords looks at how often your ad wasn't eligible to show based on your budget limitations.

 

AdWords then compares this potential number of impressions to how often someone actually clicks your ads (your clickthrough rate, or CTR) and how much your clicks have actually cost (your actual cost per click, or CPC). This shows how much your budget would have to be to better accommodate the traffic available to you.

 

To take into account that search traffic and costs can fluctuate, your budget recommendation combines estimates from each day separately. This means that even if your business is cyclical – i.e. you typically see spikes in traffic throughout the week – the recommended budget relies on the average amount of traffic.

 

Although we can calculate what your budget has to be to cover all possible traffic, we won't necessarily recommend the full amount to you. Your recommended budget tries to capture more ad impressions without drastically changing your budget. For example, if your current daily budget is $10 and we see it would need to be $100 to capture all possible traffic, your recommended amount may be less, such as $20 (the amount can vary depending on your current budget and potential traffic).

 

Hope that helps!

Pankaj

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