I do have one more question about campaign budget allocation. It’s probably a bit stupid but I need to make sure: Do I allocate budget for a campaign based on only one of the highest cost keywords? Or do I calculate it based on the cost for all keywords combined? It seemed to me that in the course you always took into consideration one keyword, unless it was meant as an example that that campaign would only have that keyword as an ad group and no more.
Your question is not stupid at all! Budget allocation for a campaign is an important consideration in digital marketing, and it’s essential to get it right to make the most out of your advertising budget.
The budget allocation for a campaign depends on several factors, and it can vary based on your advertising goals and strategy. Here are a few common approaches to campaign budget allocation:
- Equal Distribution: One common method is to evenly distribute the budget across all keywords or ad groups within the campaign. This approach is suitable when you want to maintain a balanced presence for all your targeted keywords.
- Cost-Per-Click (CPC) Based Allocation: In this approach, you allocate the budget based on the cost-per-click of each keyword. Higher-cost keywords get a larger share of the budget, and lower-cost keywords receive a smaller share. This way, you prioritize keywords that are likely to bring in more traffic and conversions.
- Return on Investment (ROI) Based Allocation: With this approach, you allocate the budget based on the expected return on investment for each keyword. Keywords that have historically shown better conversion rates and higher ROI get a larger portion of the budget.
- Manual Allocation: Alternatively, you can manually set specific budgets for different ad groups or keywords based on your judgment and insights. This approach allows you to have more control over the budget distribution.
- Automated Budget Allocation: Many advertising platforms offer automated budget allocation options based on their algorithms. These algorithms analyze historical data and adjust the budget allocation to maximize performance.
In the course you mentioned, you calculate it based on the cost for all keywords combined.
