Recommend Budget!

[dmajor]

Google adwords have recommended that I increase my daily budget from £5 a day to £44 a day, this would change my current budget from £150/month to £1320/month it clamins it could increase my clicks by 783%, Does this seem a valid figuire to you guy's? I am very new to this and wish to seek some advise from the experts!

Also my current conversion rate from addwords is 2.65% Should I expect to maintain this figure if I incress my budget?

Also is £150/month a avarage spend figure?
I am in a niche market, but I also notice my competitor has far more inpresions than I do!!

 

[bochgoch]

All depends on conversions - do your profits scale? Think of it this way - if you spend £44 a day how much will you be making back ... that's the only real way to judge if it's worthwhile.

 

[tb987]

Try it for a week. Do you know what phrases convert Best - increase budget for these. Try bidding for position no2 is cheaper than 1. There is a short guide on my blog. Basically it is all about testing and fine tuning.

 

[MaskedSuperstar]

I always bid the cheapest available, works for me

 

[surreypcsupport]

Sounds like an awful lot of money to me.

Look at your bounce-rates for visitors reaching you through your Adwords campaigns. If the bounce-rates are high - 50% or more, then is it really worth it? The reason I say this is because it would seem logical that the more you bid for keywords the greater the likelihood that visitors will bounce because there is a higher liklihood that you content will not be relevant.

You need to dial in your bids so that you gain the greatest increase in clicks for the smallest increase in bid. I would recommend changing you bids once a week for a month, each week record the bid level and the number of visits and plot them on a graph. Your ideal bid will be that where the curve is just beginning to flatten out from its steepest section.

Also, if you use the content network then having a image ad for each format will reduce the amount you need to bid for an impression. This is simply because the more format slots you bid for the more likely you are to wind a slot.

 

[someone_]

i had a very low budget, its didnt work for me!

 

[MichaelMelen]

Take a look at your current ROI and try maybe doubling it at first to make sure that the conversion ratio remains consistent.

 

[AlexAcosta]

you know better than Google how much you can afford
they only want you to spend more. I always ignore their advices.

 

[George1985]

Yep i agree, it doesnt depend on your impressions, all that matters is your conversion rates. You can test £44 a day for a couple of days and if that increases your conversion rates that go for it, if it doesnt then stick to what you were already doing with £5 a day. depends on how much the keyword is as well.