Google Ads Budget Strategy: When to Increase?
How will you know when to increase your Google Ads budget? I'm going to show in this video!
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In this video, I am going to show you a fresh Google Ads account with a new Google Shopping campaign. This campaign already generated $6,000 in sales in just about 3 weeks from $1,000. Now, is it time for us to increase the Google Ads budget for this campaign?
I mentioned in a lot of my Google Ads videos that it's okay to limit the budget of new campaigns if it's "not yet profitable." You need to get as much data first to help you decide how and when you need to apply Google Ads budget optimization. You could still bid higher and get a lot of data but you're also wasting a lot of money.
So here are the TWO THINGS I check to identify if I could increase my Google shopping ads budget:
1. Return on Ad Spend (ROAS)
If you know your breakeven ROAS, then you can easily decide if you should or shouldn't increase your budget: increase it if you've exceeded your breakeven ROAS; otherwise, keep your budget as is.
2. Search Impression Share
This metric will tell you how much you can actually increase your budget in Google ads. This is very important in optimizing your Google Ads account because it shows you how you actually rank in the search results and how much you pay for those clicks.
But you also need to remember that having an optimized Google ads account is not enough. You also need to look out for your quality score and website. Your quality score will directly affect your ad rank and having a low quality score means paying a higher amount for your clicks.
🔗 Here’s the video on Return on Ad Spend (ROAS) that I recommend in this video: ▶️ • Google Shopping Target ROAS | How to ...
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