In this article, Google Adwords Limited By Budget will be discussing what this alert in your Google Ads means and how you can fix it!
If you are running your Google Ads you must know already that budgeting is one of the things that you have to keep a very close eye on.
Google can be a little bit sneaky when it comes to telling us when we need to raise our bids and budgets. One of these sneaky ways is a term called Google Adwords “limited by budget”.
If this is your first time hearing that term. It simply means that Google is telling you to adjust your marketing budget to fit your needs, which is to get more impressions and clicks.
Watch the video version of this article below:
Google Adwords Limited By Budget
While there is no definite explanation from Google of how things work for this term, like many other things that Google only knows, one thing is certain when we are talking about Google Ads— that not every keyword is the same when it comes to the search value. Since Google holds the sacred data of which keywords are on the rise and which ones are not, it has the right to tell us too which keywords are the budget suckers based on their data.
So moving forward, what do we do now to fix this?
If you have the money to spend, the best and easiest way to resolve the Google Adwords limited by budget is to increase your budget.
But increase your budget IF you have a good return on investment. If your ROI is not yet optimized then this may not be a smart move.
It’s all about the ROI and how much business you can handle. If you’re profitable based on your lifetime value of the customer then by all means ask Google to send you all the leads you can acquire at your CPA price that gotten the campaign to.
Don’t ever limit yourself if your investment is profitable. If you invest $1 and get back $4 for example and you’re making money it’s time to scale up your business.
But let’s say that you are not yet getting a profitable ROI based on your cost of acquiring. Then keep optimizing so you find the most profitable keywords, ad groups or campaigns that are making you money.
Until then, if you have to watch your spending, then I have 7 tips for you on how to go over this problem:
7 Ways On How To Fix Adwords Limited By Budget
1. Decrease your bids
You can decrease your bids when your budget is closer to hitting the limits. This strategy may get you more clicks and better CPA. However, the downside to decreasing your bids is a decreased average position.
So when doing this, I suggest you monitor any changes, especially a decrease in the position. If you have decreased in your ad’s position, check if there is also a significant change in conversion rates or your CPA.
2. Check your ad scheduling
If you have a limited budget, you may change the way your ads are delivering. You can find a gold mine to this strategy because there are certain times that ads convert better. Go over your data and see which times are converting well for your ad.
3. Be specific in your ad text
This should be “common sense” for those who are running the ads for some time but since common sense is not common for most people, they forget this simple logic when running ads.
The importance of being specific, direct, and clear about your ads is it appeals to the right audience. You can get good and quality clicks when your ad is exactly what the customers expected. Make sure your ads are delivering to a page that offers exactly that.
4. Use of geographic reports
The same logic applies here about things not being equal in Google ads. For location, not every location is equal as well. So just exclude every location that does not convert well and only focuses more on the locations that give you the best conversion rates.
5. Make use of bid adjustments
Just simply adjust your bid if you do not want to exclude anything from your ads. You can apply bid adjustments to the time of day, day of week, or geographical location.
6. Practice exclusion or use of negative keywords
As I have said, not all keywords are created equally. You need to be specific when it comes to the bidding of keywords and make sure that you are not bidding for generic or too broad ones or keywords that are unrelated to your service or product. Find the bad keywords and exclude these in your campaign.
7. Re-evaluate your account
Make it a habit to always check, question, and evaluate everything in your Google Ads account. Look into your keywords, ads, campaign settings, etc. and find ways on how you can save costs, improve your conversion, improve your ads, and anything that brings in more profit to you.
My final thoughts
Paid search in Google is not a step by step or smooth process. Test and optimize and test more and optimize again and find the most profitable campaign that you can scale up.
When you do, Google ads will be a great revenue source for you and hopefully you’ll want to keep giving it more and more budget because you’re making more money.
So, make sure that you try these ideas out and think outside of the box and how to so that your Google ads limited by budget is nothing but good news to you.