How To Manage Your Adwords Budgets To A Better ROI

Knowing how to manage your Adwords budgets can be confusing and difficult, especially if you’re unsure of how to structure your account in order to maximum the returns on your advertising spend. After managing both accounts with million dollar per year budgets and accounts with only a few thousand a month, we’ve learnt that you can’t take the same approach with every account.

If you’re at the early stages of running a PPC campaign or running a budget that is capping out throughout the day, you’ll want to take a good look at not only how your campaigns are structured, but also how your budget is allocated. If your budget is hitting its daily caps, chances are that you have a lot of budget wastage in your account.

How Do You Get Your Budget Working Harder?

The quickest way to improve your return on ad spend is to set up a top performing campaign with your best keywords. Let’s say your website sells blue widgets, red widgets, purple widgets, black widgets, and yellow widgets. Not all widgets will have the same conversion rates, and they’ll also have different average CPCs. This causes problems when all product groups are running in the same campaign. Eventually, you will end up with a specific group of keywords consuming the entire budget, leaving the other keywords with little to no traffic.

The way to improve this situation would be to separate all the widgets into their own campaign with their own assigned budget. This way, you can move the budget around as needed. For example, if you are trying to push a promotion on red widgets, or you’re out of stock on blue widgets, you can pause this campaign and move the budget to another product. Using this campaign structure gives you more flexibility and control of your budget, and can even result in an instant improvement in your ROAS.

We still, however, want to take things one-step further. What if you have a strong converting keyword in the blue widgets campaign, but there isn’t enough budget allocated to it because you’ve given each campaign an equal share of the media spend? This is why we want to be creating a ‘top performers’ campaign, which will allow us to give our best keywords the highest impression share possible.

Finding these top performing keywords in your account is simple. Simply click on the keywords tab > Sort by conversions/Revenue (whatever your goal is) > and you’ll be left with your top performing keywords.

Once you have this list of keywords, you can move them into a new campaign called “Top Performers”. You still want to make sure that your keywords are grouped in relevant adgroups to ensure you can have tailored ads and maintain a high Quality Score.

This will now give you the ability to allocate as much of your budget as you’d like to your top performing keywords to help improve your ROAS and drive more conversions. However, make sure that you continue to spend on your other campaigns so that you can continue to find and optimise for new top performing keywords. This is a solid campaign strategy that can help you turn a poorly performing adwords campaign into one of your best marketing investments.