Can I choose a lower budget than Dragging the point on the graph increases the average CPA. The number of conversions and the cost also increase.
If Quentin is willing to spend up to €28 to acquire a customer, he’ll sell more. But the cost of his campaigns increases (€78 per day) and his margin is reduced.
Play with the Keyword Planner settings. Calculate the difference between cost, average CPA, and number of conversions. Then it’s up to you to define the strategy best suited to your business!
Remember that your average basket value can vary from one product category to another. So can your conversion rate.
Quentin, for example, also sells T-shirts. He makes a lower margin than he does with shoes. His CPA may be lower and his budget may be different.
The one recommended by Can I choose a lower budget than the Keyword Planner?
Of course : you can decide on a lower budget than the one recommended by the Keyword Planner. And that’s a good thing, since it’s only an telegram data estimation tool. Remember : in reality, many parameters can impact your CPA and potentially your budget.
However, if you set your budget too low, you’ll limit your reach. Recording two clicks a day can lead to frustration and failure!
It’s all about balance
Don’t set too high a budget right from the start of your campaigns—that would be a risk. But don’t limit yourself to a limited budget that won’t allow gary poole director security operations you to achieve your goals within a reasonable timeframe.
Also, remember that a Google Ads account needs to be alive and optimized .
You decide on your budget on a given day. Perhaps arbitrarily. Perhaps using the Keyword Planner.
In both cases, your budget must be reviewed regularly based on the performance of your campaigns, your business objectives, the evolution of your offer and the presence of your competitors.
To summarize
- To set an optimal budget, determine your average basket, then your margin.
- Once you know your margin, calculate your fax marketing target Cost Per Acquisition, which is the maximum amount you are willing to spend to acquire a customer.
- In the Keyword Planner, enter a conversion rate to see the CPA appear.
- Play with the Keyword Planner settings to see the recommended budget evolve according to the CPA.
- Finally, the recommended budget in the Keyword Planner is only an estimate. Test this budget for the first few weeks, but adjust it regularly based on your performance, your goals, and the presence of your competitors.