Learn how your Google Ads budget is allocated and paced for optimal campaign performance.
In our client's campaigns, we typically employ a shared budget strategy. A shared budget in Google Ads enables you to allocate a single budget amount that can be distributed among multiple campaigns within the same account. This approach is beneficial as it ensures that the total ad spend across multiple campaigns does not exceed a predetermined limit, which is typically set as the monthly budget. Additionally, it leverages Google's machine learning capabilities to allocate the budget effectively based on factors such as search volume and demand within each campaign.
It's important to note that categories with higher search volume and demand, such as general dentistry, will naturally consume a significant portion of the budget. If a client wishes to prioritize specific specialty services, we may increase the maximum cost per click (CPC) for that category to ensure competitive keyword bids. We also consider adding additional keywords to boost search volume in that category, which can, in turn, naturally push more budget towards it. However, it's essential to understand that we cannot directly assign a specific budget to an ad group, as this allocation is managed by Google's machine learning algorithms. If we find that a particular category isn't receiving enough budget allocation despite our efforts, we might consider creating a separate campaign for it with an individual budget to ensure it meets spending targets.
To maintain budget pacing, we employ budget pacing scripts. These scripts analyze the current spend compared to the total account budget and determine the daily budget needed to keep the account on track. Additionally, they monitor the total spend for the month and pause campaigns when necessary to prevent overspending.
Google Ads has a feature that allows campaigns to spend up to twice the daily budget on certain days, considering traffic fluctuations and ad auction dynamics. However, this extra spending is typically offset by spending less on other days, ensuring that the average daily spend aligns with the daily budget over a month.
When a new Google Ads account is launched, it's common for campaigns to underspend in the initial month. This can be due to factors such as a mid-month launch and the account being in the early stages of the learning phase. By the second month, we typically have a better understanding of performance and have implemented initial optimizations to adjust keyword bids and improve search volume. This often results in better budget pacing. If the account still struggles to maintain proper pacing, it may be due to limited search volume. In such cases, we explore various strategies like expanding location targeting, adjusting ad scheduling, increasing keyword bids, and adding new keywords or ad groups to attract more traffic to the account.
In summary, effective budget allocation and pacing in Google Ads campaigns are crucial for achieving advertising success. Utilizing shared budgets, leveraging Google's machine learning, and employing budget pacing scripts empower us to manage our clients’ budgets strategically. By understanding the dynamics of ad spending, optimizing keyword bids, and adapting to changing search volumes, we can ensure that the campaigns stay on track and deliver the desired results.