Marco

Marco

Adwords Specialist. My job is to make you more money.

My Competition has a Bigger Budget – What now?

Give up? No, of course not. That’s not how it works.
In fact, if your competition has a bigger budget than you, that doesn’t mean they also have the better campaign. And that’s when you can strike and claim their position.

You see, AdWords isn’t something that you just throw money at and then it will bring the results you want to see. There’s a lot of optimization going on, and a lot of things that can be twisted to work in your favor.

Quality Score

The quality score of your Google Ads Campaign is not only important, but also the biggest factor you have to take into
account if you want your ads to rank properly. While many people think throwing their entire marketing budget at their campaign would fix their problem, it couldn’t be
farther from the truth. In fact, people with a budget in the X.XXX’s may outrank a XX.XXX budget with ease.
How that happens? Let’s take a look.

How The Quality Score Works

The Budget

I’ve seen great success and a RO from an old client spending just 3.000£ on his campaign, opposed to his competitor, a big and established business
in the tech industry, being capable of spending up to 80.000£ at their campaign on a monthly basis.

The Optimization

Frankly, I cannot reveal everything here. Otherwise I and my fellow PPC colleagues would be without a job!
Google offers you a great arsenal of tools, free to use. One of the best may be the Keyword Planner,
which often times outshines his (costly) competitors.

The Concept

Most people expect there to be a linear relationship between ad spend and number/value of conversions. For instance, if you’re in the USA,
spend $2000 and get 100 leads or spend $4000 get 200 leads, spend $10 000 get 500 leads etc.
The relationship between money spent and conversions is linear up to some maximum ad spend and then it begins to taper off. At that point the cost per extra conversion goes up. However, this is not always true. Let me tell you why.

How It Works

Your Ad Rank is determined by multiple factors, some of them are

Your Click-Through-Rate (CTR)
The relevance of your Landing Page & Ad Text
Actual relevance of Keywords

If you have those and a few other things in check, Google will reward you with an overall higher Ad Rank and lower costs for your campaign! Keep in mind, nobody outside of Google knows exactly which factor is the most important, so it’s better to keep as many of them in check as possible. However, speaking from experience it seems that Ads which have been clicked the most rank higher – this could be because (like with SEO) it shows Google you’re the most relevant for what the user has been searching for.

On the opposite side, not keeping any of those factors in check will cause your campaign to slow down and perform worse than the campaigns of your competition – something you definitely don’t want, as your entire budget could be wasted.

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