Constrained of Flying High? The effect of advertising budgets on growth

We see so many businesses find success with PPC yet they never reach their full potential due to a common mindset when it comes to advertising spend.

The screen capture below shows a current successful Google Ads campaign. It is generating 125 enquiries in a 14 day period but, ads are only showing 37 times out of a possible 100. We can see that they are losing over 62% of impressions because their budget is insufficient to meet demand. If they did nothing else but increase their budget, they have the potential to increase their leads by over two thirds – that’s 207 more leads in the same period. Picture that – it’s huge!


Google Ads limited budget example

So why don’t they increase budget and get more leads? Because they set their marketing budget for the month/year. There’s nothing wrong with allocating a budget, we don’t all have the luxury of a bottomless pot of money, but when something is working, why actively restrict it’s growth? 

The eagle can fly, open the door and let it soar

It’s not easy to assess how some channels of advertising perform without effective measurement in place. For example, how many leads did that advert in the local paper or national magazine generate? It probably wasn’t cheap and didn’t necessarily hit your target audience at the moment they were needing your product or service. If you can’t quantify the results, how can you warrant the spend? Having a set budget is usually a good idea if you have no way of measuring performance but want to continue with that channel.

PPC advertising is different. With conversion tracking in place, it’s easy to analyse if a campaign is profitable. Simply look for conversion numbers (for lead generation), lead to client conversion rate, conversion value, cost per conversion and conversion value vs cost (for retail). If the statistics meet your targets and your impression share is limited, it’s time to consider removing the budget cap. With Google’s advanced AI signals and learning abilities, growth has never been more easily predictable or attainable.

For a free assessment on the performance and potential of your Google Ads campaigns, get in touch today.

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