Paid Search Marketing

AdWords Accounts Being Limited By Budget?

By Tom Demers May 26, 2009 Posted In: Paid Search Marketing Comments: 5

I looked in my account this morning and noticed for the first time that Google is exposing something new in the new AdWords interface:

Limited by budget warnings were just exposed in the AdWords interface.

This is interesting for a few reasons:

  • It seems the impressions share report data (IS lost budget in your AdWords report) that many PPC marketing managers make use of in their daily work is now being exposed in the home dashboard.
  • It helps make Google money (notice there's not warning for budgets that are set too high...you're either eligble or you're missing out).
  • It will lead to irrational bidding behaviour. The impact may be slight but advertisers will log into their AdWords accounts, see that their campaigns are "limited", and change the way they allocate money, upping their bids on AdWords keywords.

It's important to point out that sometimes a campaign not showing for every available impression is a good thing. Not every query your ad could be impressed upon is one it should be impressed upon; there are often campaigns that only perform well for a fraction of what Google would call "possible" or "related" impressions.

AdWords Performance Grader




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Comments

Wednesday June 03, 2009

MGA (not verified) Said:

Same thing here. I believe i built a well structure, supporting my keywords with negatives, and playing the game according to my budget. And i have a pretty high CTR. Why should i increase my budget?

Monday June 08, 2009

Tom Demers Said:

Yep totally agreed...thanks MGA.

 

Tom

Thursday August 05, 2010

DragonSearch (not verified) Said:

The clients with the highest budget also, by no mistake, have the highest conversion rates, that's why!

Tuesday February 01, 2011

pradeep (not verified) Said:

Whats the solution then to get this status removed. If budget is to be increased then how much? I have almost doubled my budget and still it says limited by budget?? Any idea? thanks

Tuesday October 04, 2011

Marketinganalyst (not verified) Said:

This is how auctions sucker people into overbidding when they do not have a pre defined limit

(or do not respect that limit) on what they can afford to spend in relation to the value of what they are bidding for.

The fact that google thinks you have lost IS due to budget is a google strategy (and who can blame them )

Your budget setting strategy should be driven by what your conversion goals are not by what google thinks.

And one last thing if your goals outstrip your sensible budget - do the sensible thing - scale back the goals !

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