PPC Myths vs Reality: Budget Scaling | Search Scientists

PPC Myths vs. Reality: Budget Scaling

Welcome to PPC Myths vs. Reality, a series with the goal of equipping our readers and our YouTube subscribers with tested advice for running successful PPC campaigns. 

Make sure to subscribe to the Search Scientists YouTube channelso you don’t miss out on any of the PPC Myths vs. Reality videos.

Today Jessica is talking about when it’s the right time to increase PPC budgets and what is the first metric we look for so that we improve campaign revenue without risking the ROI.

Video Transcription

Many business owners have the misconception that increasing their budget will hurt profitability.  

We’re going to look at how to safely increase your budget while maintaining your target ROAS. 

So when is it time to scale?  If you’re doing better than your target, it’s time to expand. Here we have 5 keywords, 4 of which are exceeding their target ROAS of 4x.

Increasing your bids and budget for these keywords will increase your revenue, all while remaining above your target of 4x.

happy dance because of increased revenue

But how do you scale without risking profitability?  

The first metric we look at in accounts when it’s time to scale is Search IS lost due to budget.

Look at yours. Is it high?  Many times profitable campaigns are still limited by budget, meaning you run out of money before the day is over.  

Search Lost IS (budget)

If this is you, you could increase your budget by the percentage that it’s down, and get maximum exposure for your best converting terms, boost your revenue while keeping a similar ROI, and you don’t have to do any further KW research.

budget increase calculation

budget increase - more clicks

Staying at a low budget level can make your campaigns stagnant and be a huge opportunity cost over time.  

There are lots of signals we look for when scaling campaigns, but search impression share lost due to budget is one of the major ones.

What metrics are you looking at when deciding to increase your budget? Are you doing things differently?

Let us know in the comments below. We hope you guys join us soon for the next PPC Myths vs. Reality video.

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Andreea Popa

Andreea is an enthusiastic full-stack marketer. She enjoys connecting multiple facets of a business. She's mixing and connecting data from multiple channels, from PPC campaigns to content creation, audience engagement, and different inbound strategies. She'd like to have more time for writing about PPC.

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