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Decreased spend, sales went up - WHY?

8:45 am on Aug 18, 2011 (gmt 0)

10+ Year Member

A curious phenomenon in my adwords account - I lower the CPC spend by about 50% and find that the sales go up. Does anyone else find this? Surely spending more would mean more sales?

3:10 pm on Aug 18, 2011 (gmt 0)

Did you lower your overall budget? or did you change your bid prices on keywords. If you changed bids on keywords maybe they're doing better in a lower position. It's also possible it's just a fluke.
5:21 pm on Aug 18, 2011 (gmt 0)

WebmasterWorld Senior Member bwnbwn is a WebmasterWorld Top Contributor of All Time 5+ Year Member

ads could be running longer as well as the budget isn't used up as fast. Might want to run a report and see what time the sales increased.
10:49 pm on Aug 18, 2011 (gmt 0)

5+ Year Member

I recently found conversion rate doubled after halving daily spend when I reduced bids when I wasn't touching daily caps.

I've also done some long term analysis on position vs. conversion rate in a uber competitive market and found no significant variance.

my $0.02