Many small to large businesses create a PPC Campaign not knowing what their budget should be. This can have a negative impact on your campaigns and result in failed activity.

It is vital to work out a Suitable Budget For Your Advertising Campaign, primarily so that you know understand monthly spend.

Once you know how much you have to spend per month,you can use the formula below to calculate your daily budget.

Monthly budget/average number of days per month = daily budget

Google AdWords allows you to choose a daily budget for your campaigns and this should be based on your Advertising Goals.

This isn’t fixed, however. You can Change Your Daily Budget at any time, in line with the success or failure of your activity. It is easy to increase or decrease monthly spend accordingly

Your AdWords spend may vary day-to-day, depending on when you get the most traffic.

For example, you may spend twice your daily budget in one day, but you will never pay more than your monthly budget in a set period.

Your PPC budget is the core element of your campaign. If your budget is too low in a competitive niche, your business could be losing out on leads. Alternatively,if your budget is too high, you could end up not spending less than your dedicated budget or generating a lot of Wasted Spend.

What Causes a Low-Quality Score?

Google introduced a metric called Quality Score. This numerical system assigned a number between 1-10 to your (Ad, Keywords and Landing Page).

Having a higher quality score will result in your Ad being returned higher in the Google AdWords Auction. As a result,you will pay less for a click on that specific Ad.

You could have low-quality scores in your campaign for many reasons, some of which include:

  • Your Ad copy and keywords are not relevant to the landing page.
  • Your website has 404 errors.
  • Your landing page does not represent the Ad the user clicked on.
  • Your landing page is an organic page and not a targeted PPC landing page promoting your service or product.

To find out more issues that can cause low quality score, please read the following article – https://www.ppchero.com/ultimate-guide-to-adwords-quality-score/

How Can You Improve Your Quality Score and Lower Your Wasted Spend?

You must always monitor your PPC campaign to reduce wasted spend. This could be because you are not managing your negative keywords correctly or aren’t monitoring your quality score for each Ad.

Here are a few areas you can look at to lower your wasted spend and improve your quality score:

  • Look through your keyword search report to understand the search terms that have returned your Ads.
  • Make sure you add any non-relevant keywords to your negative keyword list. This prevents users from clicking on your Ad if they are using non-relevant keywords. This can cause you to spend money on leads that won’t convert.
  • Users clicking on Ads normally know what they want and will be entering commercial keywords. They are also likely to be at the buying stage of the sales funnel. Make sure you are targeting commercial keywords in your Ads so that any clicks you receive are relevant to your business.
  • Make sure your Ads are relevant to the service or products you offer.

Your landing pages are crucial for your PPC success – make sure they are tailored accordingly. If you’re sending users to organic pages, you will almost certainly have lower quality scores. In any campaign, you should create proper landing pages that will deliver the best results. A PPC Landing Page can help save on spend and lower your quality score.

  • Your landing pages should have Relevance between keywords and landing pages. It should drive content with your PPC keywords, use trust signals to put the user at ease, have great call to actions, be optimised for mobile devices, load in under two seconds and have no distractions on the page. All of these points help to ensure your Ad is super targeted towards your product or service you offer.

Summary

Setting a PPC Budget gives you full control over your monthly spend on your campaigns. It also ensures you never pay more than your monthly budget. To get a good ROI, you should Improve your quality score in order to optimise the campaign and lower your wasted spend.

It is quite common for companies to have a big budget and not have any campaign structure or well thought out keyword plan. As a result, they waste 100’s of pounds each year on non-relevant clicks and don’t do well with PPC activity.

To avoid this, plan your campaign before you start and know where your money is being spent.