Budget Optimisation

Table of Contents

1. The Significance of Budget Optimisation
2. 3 Useful Steps for Efficient Budget Allocation and Utilisation
   • Ensuring Enough Budget for Working Campaigns
   • Budget Rules
   • Campaign Structure
3. Budget Optimisation Strategy for Low Ad Budget
   • Basing Your Spend Allocation on Business Goals
   • Long-Term Focus: Brand Awareness
4. Final Thoughts: Prioritising High-Return Ad Types for Maximum Profitability

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The Significance of Budget Optimisation‍

Effective budget allocation across campaigns, match types, and keywords is critical to maximizing both profitability and scalability. Without a strategic approach, ad spend can quickly be wasted on underperforming areas, while high-converting opportunities are overlooked.
This post highlights some proven strategies we have implemented for budget optimisation to help brands achieve better returns on their advertising investment while driving long-term growth.

3 Useful Steps for Efficient Budget Allocation and Utilisation

1. Ensuring Enough Budget for Working Campaigns
   Out-of-budget scenarios are one of the limiting factors for campaigns, especially the ones that are already under the ACOS threshold. For this, checking the "Budgets" tab (available on the ad console UI) or budget report is helpful. It shows the percentage of time each campaign remains in budget throughout the day.
2. Budget Rules
   This is an automated way of increasing or decreasing budgets when needed.
   For example, if your campaigns perform better during the weekend, you can set a rule to increase the budget during the weekend while keeping it limited on other days.
   Rules can also be customized based on performance metrics like ROAS, CTR, or conversion rate.
3. Campaign Structure
   Budget allocation can be more efficiently managed by separating campaigns based on individual products.
   For advanced allocation, campaigns can be split further by targeting groups (Auto, Broad, Phrase, and Exact), limiting the number of keywords to a maximum of 15-20 per campaign.
   Read more about campaign structure in this article.

Budget Optimisation Strategy for Low Ad Budget

A useful strategy for brands with a limited budget to spend on PPC:

• Basing Your Spend Allocation on Business Goals
  One common PPC mistake we see is spreading the Ad budget thin across all ad types while high-performing campaigns don't capture enough impression share or appear in top placements.
  Aligning your entire ad stack with your business objectives is crucial.
• If your primary goal is ROAS, you should allocate over 80% of your budget to the ad type and target that yields the highest returns. In most cases, this is Sponsored Products (SP) followed by Sponsored Brands.
  By concentrating most of your budget here, you maximize your high-performing campaigns' potential, capturing a significant impression share and securing top placements, which ultimately boosts profitability.
• Long-Term Focus: Brand Awareness
  Profitability shouldn’t be the only focus from a long-term perspective. Allocating 10-20% of your budget towards brand awareness helps the brand grow in the long run.
• A focused approach based on your business goals is critical when working with a limited ad budget. By prioritising the ad type and keywords that deliver the highest returns, you can generate high returns on every dollar spent.

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Additional Reading

• 3 Useful Steps for Efficient Budget Allocation and Utilisation
• 8 Tips for Effective Budget Management (Podcast)
• Budget Allocation Strategy for Low PPC Budget

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