Google Ads Budget Pacing in Paid Search Engine Marketing

August 25, 2020

The average internet user conducts between 3-4 Google searches per day. Given that there are roughly 1.7 billion people using Google daily,  search engine marketing and advertising via Google Ads offers a significant opportunity to drive traffic to your site, increase conversions, and generate better revenue. 

There are several ways to optimize your search engine marketing and advertising. However, google ads pacing is one of the best ways to run more efficient search engine marketing and advertising campaigns.

Here are our tips for running cost-efficient search engine marketing and advertising campaigns with Google Ads budget pacing. Effective budget management enables you to evaluate a campaign’s success and understand how close the actual spend is in meeting the desired target. As a result, you will be able to allocate budget well to prevent any over or underspending from happening and, ultimately, achieve the determined KPIs. 

When planning a paid search engine marketing budget, the ultimate goal is to maximize your return on ad spend (ROAS). When managing paid search budgets, it must be large enough to drive conversion volume and avoid a “drop in the bucket” scenario. 

Additionally, your budget must also maintain cost-efficiency without diminishing returns. It’s vital to find the sweet spot between a small and large budget when managing paid search with budget pacing in Google Ads. 

Advertisers commonly set their Google Ads budget pacing based on two factors: trial campaign budget and overall campaign goals.

Trial campaign budget is the total budget allocated in the trial period of the campaign.  In this case, you have to work with your budget as is. While this can be a challenge, running search engine marketing and advertising campaigns with a trial budget can help you create projections and understand what percent of the total share of voice you can capture with your trial budget. 

Overall campaign goals are based on the marketing goals and KPI forecasting for the paid search engine marketing campaign. You can estimate ideal spend levels with tools like Google Keyword Planner, and maximize revenue without diminishing returns.

Forecasting tools are vital for Google Ads budget pacing since they uncover the feasible ROI for your campaign. Keep in mind that reach (aka share of voice) is the primary determining factor for your budget recommendation. 

To make predictions, search engine marketing, and advertising teams often use Google’s Keyword Planner. This tool helps to estimate potential reach and cost, along with an estimated click-through-rate (CTR) and conversion rate (CVR) based on historical account averages. This tool is valuable for projecting and refining your campaigns to reach a qualified audience with a sustainable budget.  

So how can you understand reach in Google Ads budget pacing? 

The main factors influencing reach include the following attributes

Geo-Targeting included thelocations targeted in your search engine advertising and marketing campaign. Targeting broad geographic areas results in higher spend, especially when targeting highly populated areas. 

Volume and type of target keywords meaning a large keyword list with a high volume of broad match keywords also increases spend.  

Audience segmentation is essential. You can properly segment your target audience by demographics, site visitors, in-market segments, device types, and time of day. This limits campaign reach to the most qualified audience with the greatest likelihood to convert. Proper audience segmentation helps control your marketing spend since you avoid wasting ad spend on irrelevant audiences.

Bottom Line

When managing paid search, creating forecasts of costs and returns is ideal for establishing a monthly budget for your search engine marketing and advertising campaigns. 

You can use Keyword Planner to calculate the CPA (cost per action) you’re willing to pay and understand the volume of conversions you can expect from your budget. This method allows you to focus on your marketing goals and properly allocate a budget to achieve those goals.

Get in touch with our experts if you need help managing paid search advertising or want to learn more about how to improve your SEM performance.

Learn more about how we’ve helped brands in the life insurance and gaming industry drive more efficient search advertising with lower CPAs. 

Ready to take your ads, and your business, to the next level? 

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