a couple days ago i was just tidying up, and for consistency sake, i set the Campaign Daily Budget for each campaign to approx 4x the average daily spend for the associated campaign (some of them were set as low as 2x before i made the change).
i havent made any other substantive changes but since i made these changes, my average daily spend has increased by 10%. as an aside, my revenues have only increased by approx 2%.
i havent been able to pinpoint the cause, but does anyone know if a change in Campaign Daily Budget from say 2x to 4x would have a material impact on ads served.
AdWords, unlike other ad-serving programs, doesn't run your bill up to the cutoff point and then pull your ads. Like most other services at the 'plex, it's algorithmic. AdWords determines how likely you are to get clicked on, and then serves your ad a maximum # of times throughout the day.
So, for instance, if you and a competitor have the same CTR, but his budget is 4x yours and you bid approx. the same amount for a keyword (not likely, I know, but bear with me for the example); his ad will be shown 4x more throughout the day than yours will. So if 100 searches are performed and you get 20 impressions, your competitor will get 80.
Of course, if you set your budget high like this you're going to increase your exposure to unqualified click-thrus, just based on statistical likelihood. I'm not sure why you saw 5x more cost than revenue, but my guess is that maybe your ad was being shown during a time of day when your customers are either not shopping or not really looking to buy.
Someone else might have additional insight, I've only been in the game a couple of years.
And after the peak period of my business, can I then adjust the budget to 1x, instead of pausing the campaign as suggested in other threads in WW?
