Google Ads is a great way to advertise your business on the popular search engine. And if you want your PPC campaign to succeed, you shouldn’t be afraid to invest some money into your ad spend.

However, there is such a thing as overbidding on your ad spend. And you want to avoid this as it will end up draining your budget. The key is to find the right balance, where you spend just enough to keep your ad in a high-performing position but not too much that it dents your budget. 

Make Your AdWords Budget Lower Than Your Actual Budget

The biggest mistake that newbie AdWords users make is that they make their budget equal to their actual advertising spend. If you do this, you won’t be able to budget effectively for the future because you’ll have to pay for ads even when you’re not using them.

Setting your budget lower than your actual budget allows for natural fluctuations in your marketing costs. For example, you might have to spend more if you’re doing promotion or special deal. But in normal circumstances, your budget will be lower than your actual spending.

Focus on the Right Keywords

Most businesses spend the bulk of their budget on keywords that have low conversion rates. This is simply because they have the highest traffic.

So, it’s important to spend your budget on keywords that have a high conversion rate and relatively low traffic. In other words, you should go after low-volume, high-value keywords.

When selecting keywords, it’s best to select keyword phrases that target what you’re selling instead of single words. Phrases have a higher conversion rate compared to single words and can also help expand your customer base.

But don’t spend too much on the keywords with high competition. Instead, you should focus on a certain number of keywords that allow you to get enough traffic but also have a high conversion rate.

Focus on the Best-Performing Ad Groups

You don’t want to place all your eggs in a single basket, especially if the basket is not performing well. So be sure to spread your budget out to different ad groups.

If you don’t do this, you risk putting all your budget into an ad group that has a high spend but low conversion rate. This is because you’re essentially bidding on one keyword.

Instead, you should spread your budget out to a number of keywords within a certain ad group. This gives you more control over how much you’re spending. And if you find that one of your ad groups isn’t performing well, you can cut its budget.

It’s also best to avoid placing your ads on the first page of your ad group. This is because you’ll be paying more for your ad’s position. Instead, you should use the “Targeting” setting to show your ads on the second or third pages of your ad group.

Final Thoughts

It’s important to spend your budget wisely. This will allow you to maximize your return on investment while spending less. These tips should help you get started on the right path when running a PPC campaign.

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