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How To Allocate Your Google Ads Budget Effectively

How To Allocate Your Google Ads Budget Effectively
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I know about how things work in Google Ads, but I'm always getting stuck in strategy-making. Okay. Budget allocations, always. I'm looking to switch my current job, but in interviews I always clear technical questions. I think you mean, but always fail to clear strategy making and budget allocation part. How can I work on that? I need your guidance, how I can improve this?

All right, so what you're saying is you're pretty good on the technical side of the things like how to set up a campaign, ad groups, keywords and all the rest, but you're struggling with the strategy and the budget allocation. Let's start with the budget allocation. That's a very simple answer. So if I was the interviewer and you came for the interview and I'll ask you how do you allocate your budget amongst the ten campaigns and you got $100, how much will you allocate for each campaign?

If nine of them were losing money and one of them was making money. My reply would be I would put all of them. All the $100 in the campaign. Which is performing the best? And then perhaps ask the client whether they want to give me some additional budget for testing the other nine campaigns or to run them for a bit longer to see if the performance improves with a bit of optimisation.

If they say, no, we don't have any more budget and we don't want to increase the budget, then you say, okay, fine. Instead of $100 running on one campaign, I would reduce it down to $85 or $80 or something like that and put a little budget on the other nine campaigns. So budget allocation is straightforward. Always put the most budget into the most profitable campaign or campaigns, Right?

Cut out all the wastage. If it's bleeding money, if it's wasting money, stop it, pause it, kill it. And that's what you want to do. With regards to strategy making that is where you will speak with your client and ask them what are the goals of their business and what are they trying to achieve. Some companies will say we need brand awareness, some will say we need conversions, leads or calls.

Others will say we want sales online, eCommerce stores and stuff like that. So depending on the goals of your client, that's how we would create a strategy. So there is a simple way to do this. You ask them, okay, what is your current situation, what is your desired situation? So let's say in six weeks’ time or two months’ time or whenever, what would you be happy with in two months’ time?

If I were to start working from today, then the client is going to say, oh, I need ten leads a day or ten sales a day or whatever like that. Then now you know the end goal. So without that end goal, you cannot create a strategy. So always go and ask your clients what would they be happy with, and what are their goals.

And then you create your strategy to go towards it. And then you say, okay, now the strategy would be to run search ads, display, video, remarketing and all these Performance Max campaigns. Get your ads and your name out there at every opportunity, at every touch point in front of your audience and then we try to increase and improve your performance of your campaigns.

So that's how the strategies are worked at. It's not simple, but as you keep doing it, you're going to get better and better.

Sure, you might be the tech-savviest person around. You may know how to set up a campaign, choose relevant keywords, and set up ad groups. But you may struggle with budget allocation and your strategy. In this blog post, we’ll walk you through the steps involved in allocating your Google Ads budget efficiently.  

Budget Allocation

Let’s begin with budget allocation. If you’ve just come back from an interview and the interviewer asks you how to allocate your budget among the 10 campaigns, and you get £100, how much would you assign for each campaign?

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Let’s say nine of them are losing money, and one is making you money. If this is the case, put all of them – that’s all the £100 in the campaign. Ascertain which performs the best and ask the client whether they want to give you some additional budget to test the other nine. Or ask if they’re happy for you to run them for a little longer to see if the performance improves with a bit of optimisation. 

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If the client no longer has the budget or doesn’t want to increase it, reduce the amount to £85 or even £80 so you can put a little more money into the other nine campaigns. So, you see? Budget allocation isn’t nearly as tricky as you first thought. 

Focus On Your Client’s Goal

Be sure to put the most funds into the most profitable campaign(s). Cut out all the waste. If it’s bleeding or wasting money, stop it. Pause it. Kill it. When it comes to strategy-making, talk to your client and ask them about their business goals and what they’re trying to achieve. 

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Several companies will say they need brand awareness, while others will express they need conversions, leads or calls. And some will communicate they want sales online, in eCommerce stores and things like that. So, creating a strategy depends on your client’s goals.

Ask them what their current situation is and what their desired position is. What would your client like to see in six weeks or two months? They might need 10 leads a day or 10 sales a day. You need to know their end goal. 

Without the end goal, you’ll struggle to create a strategy. Always ask your clients what they’d be happy with and what their goals are. And, hey presto. You’ve created a winning strategy to move towards. 

Then tell your client that the strategy will include running search ads, display, video, remarketing, and Performance Max campaigns. Get your ads and name out there at every opportunity in front of your audience. Then try to increase and improve your campaign’s performance. 

The Takeaway

So that’s how you can work out your ad budget effectively. While it isn’t a walk in the park, it’s doable. And as you keep doing it, you’ll get better and better.

Uzair Kharawala

Written by Uzair Kharawala

Partner at SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.

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