Google AD spend

[DoolallyTap]

Pick a percentage, what do you consider to be the correct level of Ad spend on Google.
My current spend is 10% of total sales revenue, currently costing about £1.50 per order.
Just introduced Free Post to encourage fewer non completions and slightly higher average order values.
Should I invest more on the Ad spend. Will it generate more orders at a lower cost per order?

 

[fisicx]

There is no right answer to this. I can spend a tenner and generate £500 of business. Others spend £1000 per day to earn £2000.

It all depends on what you are selling to whom. And how wide your range of keywords, the number of campaigns and how good your landing pages.

Based on your other thread I reckon you could make your spend a lot more effective.

 

[AlanJ1]

There is no right answer to this. I can spend a tenner and generate £500 of business. Others spend £1000 per day to earn £2000.

It all depends on what you are selling to whom. And how wide your range of keywords, the number of campaigns and how good your landing pages.

Based on your other thread I reckon you could make your spend a lot more effective.

Just to add to this, it also depends on how aggressive you want to be.
I have worked in businesses where we could go mega target heavy and profit (and well) at a 3 ROAS, others where we would need 10.

 

[AlanJ1]

I would also maybe suggest you look at out sourcing your ads.

 

[fisicx]

I would also maybe suggest you look at out sourcing your ads.

He already does.

 

[AlanJ1]

He already does.

Based on other posts been made, doesn't seem like it is working.

 

[DoolallyTap]

Based on your other thread I reckon you could make your spend a lot more effective.

Tell me how..

 

[fisicx]

Based on your other thread I reckon you could make your spend a lot more effective.

Tell me how..

Need to see the site first.

But that gets into website review territory which is only for business members.

Fixing the landing pages is key to reducing your spend. Something your AdWords person should already be doing.

 

[AlanJ1]

Based on your other thread I reckon you could make your spend a lot more effective.

Tell me how..

Purely on you claiming Google Ads you need to have large pockets and be prepared to lose money isn't showing me your ads are doing great?

 

[Paul Carmen]

No one can answer this. No two business are the same, let alone different industries. Detailed data and marketing/profitability analysis/insights are needed to model and work this out.

Remember, revenue is vanity, profit is sanity and cash is king.

 

[sjr4x4]

Have been running a continual AdWords campaign since 2007. Great for trying things out and is instant marketing. But it has got needlessly more and more complicated and the "advisors" have got worse over the years as they became off-shored.

You can still manage your account yourself, just start small, play with a £10 or £50 weekly or monthly budget and learn. If you can still get a £75 free voucher even better. Listen to the advice of the Google agents if you are new, but don't assume they know what's best for your business, question everything, and ignore them when they tell you to increase your budget.

If you don't have the time to learn how it works, outsource with caution and be clear on you're objectives and expectations versus budget, and continually monitor results. Agencies love distracted and busy business owners!

If a campaign is set up correctly, it can be a low-overhead and very profitable tool in your marketing armoury. But it's not a turd polisher and should only be considered once you are happy you have a fully working and converting site/landing page.