Budget V.S. Profit

Discussion in 'Google AdWords' started by humanseed, Jun 25, 2012.

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  1. #1
    I've just created a new Google Adwords campaign, and so far today have spent $25.68, and have made $70. ($45 profit)

    My daily budget on Adwords is at $50. My question is, Do you think if I increased my budget to say $100/day or even $200/day would my revenue still be about 2X or more?

    Or does that simple math not make sense when you increase budget? I'm not looking for any kind of exact numbers here, I'm just wondering if it's able to scale as easy as increasing the budget.
     
    humanseed, Jun 25, 2012 IP
  2. omgcats

    omgcats Member

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    #2
    It depends on how much volume there is with the keywords that you have chosen. If your $50 budget is already getting you most of the available impressions, raising the budget is just going to raise your bids which means that for broad match keywords you might start showing on less relevant terms. But if you are hitting budget mid-day and your ads stop showing, then there's obviously more traffic to be had at the same CPC and profit should increase accordingly. You can look at your impression share metrics, but of course the best way to know is to try it and see. I would let it run for a little while to get a good idea of current earnings and then raise it for a day or two.
     
    omgcats, Jun 25, 2012 IP
  3. trevopoli

    trevopoli Member

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    #3
    I agree completely, you will have to look into the traffic and available impressions and decide from there. You will never know unless you research and give it a shot.
     
    trevopoli, Jun 26, 2012 IP
  4. redrum23

    redrum23 Peon

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    #4
    hi there, i'd be happy to discuss this in further detail with you. add me to your skype list: anthony.dickson and we can go over it. but yes, as other posters have mentioned, the best method is to test first and see. also, adwords will generally alert you if it detects that you are missing out on possible clicks because of your budget not being high enough.
     
    redrum23, Jun 27, 2012 IP
  5. eutrade2003`

    eutrade2003` Peon

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    #5
    Daily budget doesn't matter like it used before. Concentrate on ad optimization and always increase the bid price for one cent comparing to the competition.
     
    eutrade2003`, Jul 2, 2012 IP
  6. psharma

    psharma Prominent Member

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    #6
    I agree to Mr Cats (ok, omgcats) that you can't scale indefinately. Sooner or later you will come close to acquire most of the remaining impressions. How close you are now can be seen from impression share metrics. Also in your campaign settings select, run my ads as soon as possible, and then check out how much of the day is remaining when your budget is used out.
    but I do not agree to that fact that increasing the budget will raise your bids. Actually upto a certain point you can raise your budget keeping your ROI the same, but when you will need to acquire the remaining impressions out of your competetors, you will need to raise the bid.
     
    psharma, Jul 3, 2012 IP