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Ad Scheduling and Budget Management
Tuesday, September 23 2008 23:49
Ad Scheduling & Budget ManagementAfter you’ve established a decent quality score by bidding high initially on your new keywords and Google accounts, you’ll want to focus more on your end goal - growing revenues and profits as best you can given your budget.


In the real world, budgets are often set at a monthly level but the search engines give you a daily budget option. So how do you set your daily budget - is it the simple average, the monthly budget divided by the number of days in the month? If not, why not and what’s the better number?

The easiest solution - one that requires the least time - is to set your daily budget higher than the simple average. Due to natural fluctuations in the number of searches each day, if you set your daily budget exactly at the simple average, you won’t fully spend your monthly budget.

During high traffic days, you’ll burn through your daily budget at a relatively fast rate. As a result, your ads won’t appear for relatively long portions of the day, so you lose out on potential profitable traffic and branding opportunities.

During low traffic days, you might not even reach your daily budget. So at the end of the month you’ll find you don’t spend your whole budget - you spend the simple average on high traffic days and less on low traffic days.

The next step beyond the easiest solution is experimenting with ad scheduling to set keyword bids higher than average on low traffic days, and average or less on high traffic days. That way, on low traffic days search engines serve your ads at high positions that achieve high clickthrough rates, improve quality score, and reduce your cost per click to achieve a high position and traffic volume.

The above is a general principal. Do some testing to figure out the best way to combine ad scheduling and daily budgets to maximize your revenues and profits given your particular situation.

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