I have an colleague who I was helping with Google AdWords campaign for his pet supplies ecommerce site. He was getting about six orders per day, before we started a Google AdWords campaign. I started him on a $15 per day budget and a max PPC of $.80. He immediately saw a jump to 15 orders per day (still at the sames average sales price.) which continued for weeks. So, we decided to double the budget to $30 per day. Nothing else was changed in the campaign. However, he did not see any increase in sales! This really puzzles me. Any thoughts on why this would happen. I would normally expect an ad campaign in other media to double results if expenditures were doubled and nothing else was changed. Why did this not work for AdWords? Thanks!
How long has the budget been doubled? I often tell people that what happens over a day or two is a not a trend. Make sure you're looking at a large enough sampling of data to make a good decision.
Thanks for your reply. We let the double-funded campaign run for about a month before we stopped it and went back to the original funding. Sales stayed at the same higher level that we got when we first started the original campaign. I remain mystified by this.
Hi There I am interested in this topic from a slightly different angle. I have no idea how to calculate my optimal max ppc bid. Last month I had approximately 200% ROI on my PPC campaign, but need more sales volume to make decent money. My average cpc is currently 14 cents, my max cpc break even point is approximately 43 cents. How do I calculate where to place my average bid between 14 and 43 cents (break even point)? I have a conversion ratio of 1.53%, and my average profit per sale made is 27 dollars. Any advice would be appreciated. Thanks
If it has reach the max demand then there is nothing you can do... the increase of your budge won't make any change.
the demand must be pretty small especially if he is targeting all of the US. BTW were you getting charged the full $30?
Have you got google analytics installed on your pages? You can track your ROI by keyword. This will help you identify the keywords that convert. Then you can mess about with the ones that convert and try different CPC levels and see what effect it has on conversion.
Hi, Thanks for your reply. Yes, we were getting charged the full budget and also getting double the clickthroughs. The only thing that did not ramp up was actual sales. I was only using Search (not Content Page clickthroughs) and the keywords that resulted in clickthroughs stayed about the same 50 or so. So the only thing that seems to have happened is that the quality of the visitor decreased for the additional budget.