Google | To Spend or Not to Spend?

Google-Spend

When it comes to online advertising Google knows what it’s doing. If you really want to make an impact with your online marketing—Google Adwords is your best friend. Recently Google made some changes that might seem a little drastic, but could also bring you the next day traffic that you’ve been working so hard to get. Let me tell you what they did and how this decision can help you in the long run.

On October 4, 2017, Google switched their policy on daily budget limitations. Before this change, Google gave themselves the authority to spend up to 20% above what is assigned to a campaign in AdWords. Say what? For example, if you gave a specific campaign $100 per day, Google could potentially spend $120. I know what you’re thinking but bear with me because this has all changed. Now Google is allowing themselves to spend double the allocated budget, turning $100 per day into $200 if they see fit. Keep holding on. While this may seem concerning on the surface, this might not be a problem and could possibly be beneficial for your online campaign.

Let me explain how this change will benefit both Google and your marketing campaign. Google makes money when their customers make money. If someone is advertising through a certain channel and is not receiving a return on their investment, they will likely pull their money from that channel and move it somewhere else. This means that Google has a vested interest in the success of the companies that advertise with them. So, if your campaign doesn’t make money, then Google doesn’t make money. Google will soon be rolling out new bidding strategies, all of which use computer learning systems to help show the best ads at the best times. Can someone say automated marketing? We believe that the new daily budget policy is in direct reflection of that. Because their artificially intelligent machines will learn when consumers click through ads more often and fill out more forms or call (convert). They are trying to give themselves the leeway to allow their advertisers the largest return based on their goals. So, to do that they may need to spend more on a Monday than a Sunday.

Because the new policy has only been around for two weeks, there are still some unknowns out there. We have seen accounts that have had particular campaigns spend significantly more than their daily budget; however, when you look at the overall account with daily fluctuations, the overall campaign didn’t overspend the total budget. Some of the day-to-day budgets fluctuated because Google pulled funds from one part of the campaign that was lagging and to another that provided more return. Google’s Tannis McKenna says,

“The aim of the budget update is to increase the chances that over-delivery will help campaigns spend the total amount of the budget allocated. Adwords will continue to optimize your spending based on daily fluctuations in traffic.”

Because clients often want to see their budget spent evenly across the entire month, the only issue that has come up so far is in reporting.

The budget update from Google is something to keep an eye on. This type of automation can really help adjust where to spend your resources to get the greatest rate of return. In this industry, you have to spend money to make money, and it is to your benefit to know exactly where to spend to make the most return.

Let Strong Automotive Merchandising help you in setting up the best online marketing strategy that will help you get next day traffic.


About the author

John Paul Strong: For someone who spends an average of 135 days outside of the office meeting with clients, John Paul Strong remains the driving force behind his Birmingham-based advertising agency, Strong Automotive Merchandising. Strong began his career as a fresh-faced account executive at Martin Advertising. Learning much, but never satisfied, he convinced his father to partner with him in reopening their own advertising agency in 2004, catering exclusively to the automotive industry. The company started strong but humble. The original roster of 10 employees and eight clients has exploded today, growing to 100 full-time employees and more than 220 automotive dealers. And it hasn’t gone without notice. Along the way, Strong Automotive Merchandising has been recognized as a perennial winner in Birmingham’s Best Places to Work contest and as a Top 20 Agency among Google’s National Ad Partners. Yet, Strong still finds time to share what he’s learned along the way. As an avid writer, he has published two books in the Next Day Traffic series, along with more than 1,000 automotive-focused blog posts. He is also a member of the Texas Auto Writers Association, and his success has been recognized in the Birmingham Business Journal’s 2013 “Top 40 Under 40” feature and the 2017 CEO Awards. The foundation for Strong’s career began at the University of Montevallo where he earned a bachelor’s degree in communication studies and advanced public speaking. Always staying ahead of the competition, Strong later went on to study in Harvard Business School’s Executive Education Program. Amid all of his endeavors, Strong always makes time for what matters most – his family. He is a proud husband to Amy, and father to Lilly Grace, Anne Charlotte, Hudson, and Ford.


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