Pay Per Click Ads Budget Strategy

Pay Per Click Ads Budget Strategy
Pay Per Click Ads Budget Strategy

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There are 99 ways for your company to get more out of the PPC campaigns you run, and budget is one of them. Generally, conversations about budget end with conversations about raising it. This is not bad advice, but sometimes you don’t have the opportunity to make it happen.

Today we’re going to take a look at the specific components that will give you more opportunity, and how to control those pieces to get more bang for your buck without having to overplay the budget.

Having More Opportunities: More Budget or Less Pay Per Client

Marketers often declare it a mission to have more opportunities and define it as more sales or sales opportunities. The formula is always the same when creating a marketing plan, no matter for the boss or the client.

From a high budget point of view, there are two main ways to make it happen:

  • Increase your budget
  • Less cost per transaction, your CPA value.

It is a very confusing analysis and for us meaningless. If the budget is fixed, then we have only one choice: to be more effective.

Pay Per Click Ads Budget Strategy. Pay Per Click Ads Budget Strategy. Pay Per Click Ads Budget Strategy.

Quick Gain Split

One of the simplest ways to improve performance is to split the budget in different directions. Try to get the best performance by rating your campaigns on CPA and creating a checklist.

Two simple wins are as follows:

Allocate more budget to campaigns with low CPA, don’t cut back here.
Keep an eye on typographical issues and draft status across all campaigns, but especially on high performers.
Cost Per Action is Linked to Cost Per Click and Conversion Rate

We know that we cannot increase our budget at the moment. That’s why we need to take a closer look at the CPA value. What can we do to influence the CPA value?

We need to consider another concept. We know that CPC and CVR – cost per click and conversion rates – make up the CPA value. Therefore, we need to keep a close eye on the CPC value.


If we want to generate more opportunities, we should reduce the CPA value and focus on increasing the CPC value or improving the conversion rate. We can adjust our high-budget strategy a bit more:

Raising the budget
Reducing cost per action, CPA value
Allocate budget to the best performing campaigns
Increase conversion rates (in case CPC values increase more slowly than CVR values)
Reducing cost per click (in case CVR values rise more slowly than CPC values)
Improve CPC and CVR and Have a Lower CPA

The real work starts now. So far you have identified the best and worst performing campaigns. Now it’s time to squeeze them for the amount you’re paying.

Pay Per Click Ads Budget Strategy. Pay Per Click Ads Budget Strategy. Pay Per Click Ads Budget Strategy.

Methods for Bad CVR Values that Need to be Fixed

1. Remove underperforming keywords, placements and audiences

Create a search terms report in the search pool and add negative keywords
Remove audiences with bids that increase by -100
Keep an eye on mobile performance, if it is poor consider negative incremental bids

2. Take landing pages into account:

Simplify the testing phase using Optimizely, Unbounce and other tools

3. Improve targeting. Create multiple panes and browse by region, device, search network, time and day. Find tabs that are not working, if any. Get more incremental bids with lower bids or consider removing them.

How to Reduce High CPCs

Lower your bids, especially for keywords and placements that are in the top 10 in percentage terms

Improve the click-through rate, and to do this, try to choose the best ad types among all ad groups

Stop poorly performing ads and test new ones with tools like Boost Media or Adalysis

This is not an exhaustive list but it gives you new ideas to have more opportunities.

Probably, completion and cross-channel will become an issue, but that’s a topic for another day.

Bring It All Together

In conclusion, if you want to maximize your budget, you should think about the things you can control. You should think about things like cost per click and conversion rates. By putting these factors front and center, you can feel confident about squeezing every penny out of your budget.

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