Why “Limited by Budget” is an Easy Win for your Paid Search Strategy

‘Limited by Budget’ regardless if you are an agency or advertiser should be one notification that you are excited to find in an AdWords account, as it should always mean opportunity.

As an agency it means two things:

1.   Given an opportunity to audit a prospective client’s account, I have a way to steal business from a competitive agency.
2.   It immediately gives me an opportunity to score an easy win for a new or existing client.

If you are an advertiser it means:

1.   You can likely increase your sales / revenue just by increasing your spend.
2.   If you are unhappy with your Return on Ad Spend (ROAS) there is likely fat you can cut and improve your ROAS / CPAs pretty easily.

My point is, if you can reduce your waste, for every dollar you save that is one more dollar spent on getting you more qualified traffic.  Or in terms of leads and dollars: if you are limited by budget with a CPA of $30 dollars and you find $300 in waste that is 10 more conversions at the same exact spend.

That is a WIN, WIN, WIN situation.

Here are some of my quick tips to find the fat:

1.   Device Segmentation – while best practice today is managing a Paid Search account differently for Computers, Tablets & Mobile devices, 2 of every 3 accounts I evaluate are not setting up, analyzing or reporting on performance this way.  If your account is Limited by Budget and isn’t setup to target by device then you can quickly see performance by using the “Segment” feature in AdWords.
2.   Day Parting – Even the best Paid Search managers can mess this one up. CPCs, Conversion Rates and CPAs will vary by hour, and again simply using the “Segment” feature in AdWords you can analyze your campaigns by ‘Day of the Week’ & ‘Hour of Day’.
3.   Keyword Match Type – If you are not using negative keywords or evaluating the search queries that are driving traffic to your website then almost assuredly you are wasting impressions, clicks and inflating your CPAs.  Any reduction to wasted impressions boosts your CTR which helps your Quality Score, which lowers your costs and obviously, reducing wasted clicks is an immediate savings and boost to your conversion rates.
4.   Dimensions – Geographic analysis can be huge when you are talking about Limited by Budget as not all locations are going to convert at the same rate or at the same CPAs.  eCommerce clients that do not have free shipping for all products and locations run into this situation frequently as shipping costs can often prevent conversions.

This list could be much longer & less detailed but I wanted to show you the benefits of Limited by Budget and why for me, it’s a sign for opportunity.

There is a caveat to this, everything is based on the idea you have accurate sales & conversion data, if you are concerned you may have tracking issues seek out a team like Empower’s Decision Sciences as your optimizations / analysis is only as good as your data.


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