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Decreased spend, sales went up - WHY?

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

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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)

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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)

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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)

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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

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