Is it Time to Increase Your AdWords Budget?

If you are profitable on AdWords, you may be wondering if it is a good time to increase your budget, take a little bit of a risk and try to push to the next level as a business. It’s a decision that certainly makes people a bit nervous, but as long as you’ve been keeping track of all of the information at your disposal, you should already know whether or not it is a good idea to push your budget a bit higher. If your campaign has been successful on a smaller scale, there is plenty of reason to believe it can be more successful on a larger scale in terms of sheer profits. 

That’s obviously the major factor in the decision. If you’re turning a profit now on a small budget, chances are that there is room to grow your budget and, with it, your profits. Now, granted, it’s not a guarantee as sometimes you will increase your budget and run into problems. For example, one way to increase your budget is to increase your bids on a keyword or add new locations. This can have a detrimental effect, so you will want to monitor it and make sure that it remains profitable. On the other hand, sometimes you can increase your budget without increasing your keyword bid or changing any of your specifics and that will almost always be a profitable decision to make.

In some cases, even moving from the third or fourth paid result up to the top result can hurt your bottom line because it may drive more traffic, but lower quality traffic to your site. The users who read down to the third or fourth result are essentially prequalifying themselves as more serious customers than those who make an impulse click on the top result. As such, they are better visitors to have on your site. They are more likely to spend time on your site and shop around a bit.

At the same time, you may make plenty of sales off of impulse buyers and discover that paying more to move up to the top result is worthwhile. It’s worth noting that search engine marketing is not a linear proposition. There’s not an exact relationship between your budget and your profits, which can make it tough to predict the end result of changes in your budget. However, if you keep tweaking it and experimenting with it, you should find the sweet spot to maximize your return.

Ask an Adwords expert about your plans of maximizing your Adwords budget. With YaelConsulting Adwords Consultant, it is easier to understand if what are the right steps to improve your marketing techniques.