Google AdWords PPC – Budget Hogs

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Using Proper Pay Per Click Account Structure is important from the start date of any Google AdWords account.  Organizing your Campaigns, Ad Groups, Keywords & Ads into relevant and tightly knit groups will help the account perform at the highest levels and increase Return on Investment. Using the tracking and stats provided you may find that some Keywords are “Hogging” your Campaign’s Spend.

Pay Per Click Budget Hogs Example

Below is a sample account called “TV World”.  We have Campaigns (types of TV’s) with Ad Groups (TV brands),  For the sake of this example, lets assume that each Campaign has a daily budget of $50, and has 3 Ad Groups within.

Pay Per Click Account - Budget Hogs

Optimizing your Pay Per Click Account:

In this example the “Sony” Ad Group (shown in green) has been “hogging” much of it’s Campaigns $50/day budget.  The Ad Group is performing well and we are seeing a nice Return on Investment (ROI), however it is using $35 of the allotted $50 per day.  In order to allow the other Ad Groups, “Samsung” & “Visio”, a chance to perform we are going to take out the Sony Ad Group and make it into it’s own Campaign.  We can choose to set the budget a bit lower for these the new campaign or we can just let it run at $50 for a few days and see how it performs.  If the ROI is where you want it, the budget should be fine.

Pay Per Click Budget Hogs 2

The underlying idea here is that we should always be looking to improve the performance of our Pay Per Click Account.  By improving performance and hopefully decreasing our CPA (Cost Per Acquisition) we can continually increase our Budget while maintaining a desired ROI.  Here are some other methods to Optimizing your Pay Per Click Account.

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