How Should I Allocate My Budget Across Different Ad Groups?

Short Answer: Focus your budget on the service that generates the most revenue and receives the highest number of clicks. Instead of spreading your budget thinly across multiple ad groups resulting in scattered clicks, concentrate your spending on this winning ad group. Increase your daily budget, for example up to $800 per day, and then expand by duplicating this specific service ad across all cities in your area, making a unique landing page for each location.

Full Explanation

When managing multiple ad groups, it can be tempting to divide your budget evenly among them. However, this approach often leads to inconsistent results, with only a few clicks coming from each group. Instead, targeting the ad group associated with the service that drives the most revenue and consistently receives high click volume is a smarter way to allocate your budget. By focusing on this one ad group, your advertising efforts become more efficient and effective.

After identifying your top-performing service, increase your budget on that ad group. A higher daily budget allows you to maximize the potential of this service by capturing more clicks and conversions. Following this, you can replicate this focused approach by creating multiple ad copies of the same service targeted to different cities within your area. Each duplicated ad should direct users to a dedicated landing page tailored for that specific city, enhancing user experience and relevancy.

Step-by-Step Breakdown

Identify the top-performing service: Determine which service generates the most revenue and receives the highest click-through rates.
Consolidate your budget: Allocate your budget primarily to this winning ad group rather than dispersing it across multiple less effective groups.
Increase daily spend: Consider raising your budget, for example, to around $800 per day, to maximize reach and impact within this ad group.
Duplicate the ad: Create copies of this successful ad, targeting different cities in your local area.
Create specialized landing pages: Develop a unique landing page for each city that corresponds to the duplicated ads, making the content more relevant to the audience.

Real Examples

Imagine you run a digital marketing campaign for a plumbing service. Among your multiple ad groups, the one advertising emergency leak repairs receives the most clicks and generates the highest revenue. Instead of maintaining smaller budgets for ad groups promoting pipe installation or drain cleaning that perform less well, you increase the budget to $800 per day on the emergency leak repair group.

You then duplicate this ad group for various cities you serve, such as City A, City B, and City C, each pointing to dedicated landing pages focusing on emergency leak repairs in those specific locations.

Common Mistakes

Spreading your budget thinly across numerous ad groups, which scatters the clicks and reduces overall effectiveness.
Failing to identify the service that drives the most revenue and highest click volume before allocating your budget.
Not customizing landing pages for each city or duplicated ad, which can lower relevancy and conversion rates.
Keeping budgets low when you have a winning ad group, missing the chance to scale your campaign.

FAQs

Q: How do I determine which service brings in the most money?: A: Look at your ad performance metrics focusing on click volume and conversion data to identify the top-performing service.
Q: Is it necessary to create a separate landing page for each city?: A: Yes, having a specific landing page tailored to each location improves user experience and can increase conversions.
Q: Can I increase the budget beyond $800 per day?: A: Increasing the budget further is possible, but the example of $800 per day is a guideline based on the information provided.

Key Takeaways

Focus your advertising budget on the highest performing service ad group rather than spreading it across many.
Increasing your daily budget for this ad group maximizes potential clicks and revenue.
Duplicating the successful ad across multiple cities expands reach efficiently.
Custom landing pages for each city increase relevancy and conversion chances.