Under-budgeting and Underspending Hurts Your PPC Campaigns


Pay per click is anything but easy.

It’s more than just making an account on Google Ads, plugging in keywords off the top of your head, and waiting for positive results. It isn’t something you can simply delegate to an unsuspecting intern, either.

PPC is an ongoing experiment. It involves constant testing of each keyword, ad copy, and campaign you have — particularly when you’re just starting out with PPC. It takes an extensive amount of time and effort to get your PPC campaigns running smoothly and consistently. For small and medium businesses, this may be time you don’t have.

Third Stage Marketing provides professional PPC services in Denver that allow you to focus on your business’ day-to-day core operations. We’ll handle all the technical parts, provide actionable data, and send leads your way — all you need to think about is assigning the right budget.

Setting Too Small a Budget

The PPC world operates on a “no pay, no gain” philosophy. Setting a low initial budget may seem more practical for smaller businesses like yours, but it’s counterproductive for your entire PPC campaign. You’ll still be missing opportunities for clicks and lead conversion even if you’re hitting the ceiling of your low PPC budget.

An insufficient PPC budget limits your ability to bid on relevant, high-performing keywords and, in turn, affects your ad’s total impressions share. A higher impression share means your ad is showing up more often on results pages and reaching a wider audience. It also gives you more data you can use to optimize future ad cycles or campaigns.

A low PPC budget restricts your testing ability, moreover. Running at least two ads per keyword set or split-testing your ads is an essential way to gather actionable data. Knowing which ads are effective and which ones need more work (or to be gotten rid of) helps you improve your return on investment.

Having the Budget but Not the Clicks

Allocating a larger budget for your PPC campaign and not consuming it all is not ideal, either. You’re not saving money if you underspend your budget; rather, you’re losing possible leads and conversions. Just as a too-small budget can adversely impact your impressions share and data collection, so does not using up your allotted budget.

Underspending happens for many reasons. You need to take time and sit down with your PPC manager to identify which parts of the campaign can be improved. Some common issues leading to underspending are bidding too low, using wrong or not enough keywords, and having unattractive ad copy.

Make sure to check which of your keywords is performing well and adjust your bids accordingly. Remove any keyword that isn’t generating enough clicks and add more related keywords with higher search volumes. Improve your ad copy based on which ones resonated best with your audience, as well.

Arriving at an Ideal PPC Budget

So, what should be the ideal budget for PPC? The answer is it depends. A number of factors can shape your budget. A couple of them are your business model and the amount of time you’ve been doing PPC. If you’re just starting out, setting goals (specifically SMART goals) would be your first step. Doing so will allow you to make a budget in the early days of the PPC campaign.

Establishing Goals for Positive ROI

Before you get to the cents and dollars of how much you should spend, you need to define what you are spending for by creating quantitative and actionable goals. If a purpose you’ve stated feels unattainable or vague to you, it most likely is. You can overcome this by using the SMART framework.

Here’s a guide for making a SMART PPC campaign goal:

  • Specific – What is the outcome you would like to achieve from this campaign? Examples include brand awareness (g., 200,000 new impressions from qualified prospects) or an ROI-driven result (e.g., 100 paying customers with spending not exceeding $60 to acquire each).
  • Measurable – The good news is that Google Analytics and Google Ads make result tracking a breeze. You can measure the whole customer journey by setting up conversion tracking well.
  • Attainable – Do your goals align with your conversion metrics and historical traffic? If you pay $2,000 across a specific period, for instance, will the traffic coming into the site convert into the required number of customers that will help you achieve your targets?
  • Realistic – Figure out if you have the resources and tools available to hit your goals.
  • Time-Bound – Every goal should have a deadline. Putting it in the context of PPC, you have to determine the length of time you’ll need for your campaign.

Establishing these goals at the start of the campaign will help you gather vital data while striving to produce business-critical results.

For an optimized PPC campaign, approach the SEO experts. Third Stage Marketing provides professional PPC services in Denver, from keyword research and ad creation to testing and campaign assessments. Contact us today to get started.

Scroll to Top