- Google Shopping budgets, how do you set them?
And how do you set them to make sure you maximize the sales
and profits for your Google Shopping campaigns?
Well, I'm gonna show you exactly
how I do that in this video.
(bright upbeat music)
Hey, guys, this is Sam from keycommerce.com.
And today, I'm gonna show you
how to set your Google Shopping budgets
and everything else you need to know
about how to use them for success in your campaigns.
I've been working with Google Shopping campaigns
for five years now
and scaled up several different seven figure stores,
shopping campaigns are incredibly valuable.
And the budgets that you set
with those campaigns do play a role in that,
I'm going to walk you through step by step
exactly what I do.
And if you have any questions at all throughout this video,
please leave them in the comments below.
And I'll answer them as quick as I can.
Okay, so what are budgets in Google ads.
So budgets are a setting on Google campaigns
that allow you to tell Google,
here's how much I want to spend on ads,
you set them by going into your account,
going to the campaign's view,
and then changing them there on a campaign basis,
just click the budget amount you wanna change,
and then you can change its value.
So be careful here because Google can spend more
than you actually allocate.
This can be really frustrating for e-com store owners,
especially when you start advertising on Google ads
because Google goes and spends more than your daily budget,
Google can actually spend up to twice
your daily budget in a given day.
Sounds crazy, right?
Well, let me explain.
I do understand their logic.
Say you set a budget of $10 per day,
you run your campaigns,
and you start getting clicks,
and you fill up that $10 a day budget,
and then boom, suddenly, an athlete uses your product on TV.
And all these people are searching for your brand,
or your product.
And your ads are showing there on Google search,
suddenly, you have a big influx
in the potential traffic for your e-commerce store.
If Google sticks to your $10 day budget,
this might get filled up by 9:00am really early in the day,
and suddenly, all these people that were there ready
to buy your products aren't seeing your ads anymore,
you might say, hey, I'm totally cool with that.
I just want to spend $10 a day.
And that's it.
But Google, Google are in the business of making money.
They are in the search engine.
So they make the rules.
They think it's in your best interest
to increase your budget on those days
where there's more converting traffic.
So they'll increase it
and you'll spend more it sucks for some econ store owners,
and many marketers just like me got all rustled
and upset when Google announced that this was the case.
So does this mean that my budget is actually meaningless.
And I should just set it to 50%
of what I really want it to be
No, don't do that Google actually works
at a monthly average based on your daily budget.
So as long as you don't go changing your daily budget,
Google will spend over a month,
that $10 per day on average.
So basically, even if you spend $20 on one day,
the next day you'll spend less so that over a whole month,
it evens out.
So on average over that one month,
you will spend $10 per day,
even though it's a bit up and down depending on the day.
So it's okay but if you're there,
and you wanna keep changing your budget every single day,
depending on how much cash flow you have, or what have you,
it's gonna be really tough.
So just keep this in mind.
Okay, so how can you use your budgets
to your advantage for Google Shopping campaigns,
what I like to do is have low budgets
on campaigns that aren't yet profitable,
and then have very high or unlimited budgets on campaigns
where they are profitable.
The cool thing about budgets
is that they give you control
over where you wanna spend your money in your account.
Obviously, we wanna spend money
more where things are working,
and less where things are not.
Think about it, like a room of people
all searching for your products,
there are some people in that room that are there
with their credit card in their hand
right in front of the computer,
waiting to find your site,
and then boom,
they're gonna purchase these people have high buying intent,
you've heard me speak about this before.
They're they're closer to the bottom of the funnel,
and they're ready to buy.
So apart from those people,
you also have other people that are there
in that room searching but they're just researching,
instead of a credit card in their hand,
they have a coffee mug,
they're still looking around seeing what the options
are seeing what the product is,
and even seeing other any potential solutions
to their problem.
They might not even want your product
or not buying your product
because they're still further up in the funnel.
And that's okay,
the people at the bottom of the funnel,
they had to get there from the top
of the funnel and become aware research,
learn about the product,
learn that you solve that problem
by offering a fantastic product
and then actually purchasing and buying
that product becoming a customer.
Okay, so say you only had one click
and you had to choose between these two types of people,
the coffee mug people that are researching
or the credit card people that are ready to buy.
Who would you want that click from?
Well, obviously,
you want the person that's ready to buy
because they're gonna make you more money.
In this case, we only have one click
and we have to get it from one person, it's limited.
And this is how you want to think about your ad spin,
I'm sure that you don't have billions
and billions of dollars to just spend willy nilly
on all your ads,
you have a limited budget,
you don't have infinite cash,
you need to focus
on what's actually making you money, profits.
This is why we need budgets,
we need to figure out which campaigns
are delivering the best results, the profits,
and then allocate most of our money there,
we still need to save some cash
to discover new opportunities,
we don't just wanna give it all to the proper campaigns.
And that's it, that's it?
No, we wanna still be open to opportunities,
because you'll find that there are still
some gold nuggets in all the other campaigns
that you can pull out and put
into that proper campaign.
So that's why we need these two types of budgets.
One is for making profits consistently,
and two is for looking for opportunities.
So get into this mindset.
Think about your ad spend and your budgets in this way,
how can you allocate more money to what's working,
and then a little bit to what isn't working yet.
But you know it's delivering good data
and opportunities for your account.
So how does this work in practice?
What do I do,
I get my shopping campaign going
and I get it to start making some money,
I get some conversions in the door,
sometimes you find that the campaign becomes profitable
really quickly, and delivers a very positive row
as return on adspend.
Great, that's awesome web pottying.
But often, you'll find that just a few products
in that campaign are absolutely killing it
beginning a lot of clicks, but a lot of conversions.
And the CPA cost per acquisition,
or the row as return on adspend is very, very good.
And you're making profits.
The problem is,
if you look at the campaign on a whole level,
it's not performing that well.
But you go in and you split out based
on the products and you say,
these two products are killing it,
these 10 products,
they're really dragging down that campaign,
well, let's pull out those two products
into their own campaign,
and then give them a big budget.
So Google can go pushing those to more
and more people on the search results.
And then we reduce the budget for that old campaign.
So we still keep seeing for other products
and adding negative keywords and adjusting up bidding
to see what we can make work.
But really, we're now limiting our budget
for that new discovery campaign, as we call it,
or an opportunity campaign,
while putting our money to the campaign that is working,
make sure that for the products that you pull out
of that campaign and put into a special unlimited campaign,
that you then go back and exclude them in the old campaign.
We don't wanna be advertising in both campaigns.
That's a recipe for disaster,
then, like I said, we go back to that old campaign.
And we keep optimizing it, we keep adding negative keywords,
we adjust the bids based on the performance.
And we see if we can get it to work.
Sometimes it takes more time as you do these things.
Sometimes you might not be able
to get those products to work.
And you need to set some sort of baseline,
say, depending on how much you spend on those products,
you might have a limit,
I'll spend $250 per product and see if I can get approval,
you need to set that for yourself.
So to summarize, you'll end up having a discovery campaign
that's looking for opportunities and trying to get
these products to work.
And then you'll have this winning campaign
that then allocates budget towards what's really profitable
in your shopping campaigns,
that discovery opportunity campaign
will have a capped budget, say $50 per day,
it's really up to you
how much you wanna allocate towards that,
that profitable campaign,
I would set that to 200 $300.
It's really up to you.
Sometimes it won't ever spend the $300 mark,
but it'll scale up eventually.
And you'll be very surprised.
So how do you decide how much to allocate
to that discovery campaign?
Well, my answer is, how much are you okay
with losing each day
or each month to get new data and new opportunities,
you can set a fixed amount, like I said, 30 to $50
or you can say, hey, 10% of my budget,
my ad spend is gonna go towards this campaign,
find some sort of percentage
that works for you don't neglect this campaign.
Don't think about it like this little annoying brother
that just taking all your money.
No, it's your source of gold and opportunities,
you will see over time,
you'll be able to pull some good stuff out,
even if that's great converting keywords
from the search terms report
to then optimize your feed more
or to add into your search campaign,
or to pull out those products and pluck them
and put them into that profitable campaign.
Remember, it's an iterative process
that happens over time.
And every negative keyword that you add,
you don't have to add that again, it's there.
It's getting more and more optimized.
This same strategy can be used for search campaigns too.
You have a discovery campaign
that's looking for new keywords that can convert
and then once they convert and you see them
in the search terms report,
you pull them out and put them into
that winning profit campaign as exact match keywords.
That's an overview of the process.
It's called an alpha strategy.
I'll get into it in another video so subscribe
so you make sure you get a notification
when I release that one.
Okay, search impression share.
This is something else I really wanna teach you guys
and it's called search impression share.
I do have a whole video going deep
into search impression share
is incredibly valuable and something you do
need to know as a Google Ads marketer.
In short, it's a way that Google can tell you
out of all the searches that people
are making out there.
How many are you actually showing for say,
if you have a roomful of people all searching
to find your products,
how many of those people do your ads actually get
in front of this relates to budgets,
because sometimes your ads might stop showing
during the day, because your budget is capped.
So by just increasing your budget,
you can suddenly get more search impressions.
So more people viewing your ad,
and they get more clicks and more conversions,
you can actually see this happen for your own campaigns,
right now, by checking out some metrics
in your Google Ads account,
go to the campaign level, go to modify columns,
and then unhide the search impressions columns,
let's jump into my computer real quick.
And I'm gonna show you exactly how to do that.
Hey guys, Sam here from key commerce.
And I'm now in a Google Ads account.
And I'm gonna show you
how to see the search impression share for your campaigns.
So what I've done here
is I've actually unhidden a lot of the columns here,
we're gonna show basically the search impression columns
that we want to see.
So to do this, you might have different columns here,
but that doesn't matter.
We're gonna go into columns, modify columns,
and here's a window where you'll be able
to see all the extra data you have access to.
And it can be pretty confusing at first,
cause there are so many extra columns
that you can look at and explore yourself.
What we really care about is over here competitive metrics.
And these ones here,
so search impression, share, search, impression,
or search last IS search impression share last rank
search last IS budget search impression share lost
because of budget.
And what this means
is that we have the search impression share
and this Google will actually tell us
how much search impression share we have lost
because of a poor rank,
or because of our budget has kept the amount
of impressions that we can have.
So you'll now be able to see, for example,
for this shopping campaign here, for example,
like we it's pretty much maxed out on the budget,
like we we might be able
to increase the budget for this one,
and we'll get a tiny percentage increase it
keep in mind is looking at this range.
So you're always looking retrospectively keep that in mind,
that's very, very important.
But for these ones, here, we can go, okay,
we're only showing 50% of potential searches out there.
And we're losing 50% because of our rank.
And this one here, we're losing 70% because of our rank,
that's really interesting.
And you'll see here that this is actually
a branding search campaign.
And this one is a generic, more of a broader one.
This one's a product focused one here.
And so the rank,
that might just because the the products aren't as relevant,
like this one here we have a lot
of negative keywords for product searches.
And we're just trying to target the actual brand,
such as in the shopping campaign.
That's a whole strategy on shopping campaign structures.
There's another video, I'll leave a link in the description,
go down that rabbit hole and explore that one there.
But basically, for search impressions yet,
this tells us, okay,
if we can improve the rank of our of our products,
whether that's the ad rank in a search campaign,
or in a shopping campaign,
we can then show for more searches.
So how do we actually increase the ad rank,
the first way is to make get a better quality score
in search campaigns,
or to improve basically the quality score
of shopping campaigns by improving the product feed.
That side of things,
that's one side you have the quality score,
the other side is the actual bid.
So don't look at this and go,
oh, no 50% of searches for this campaign.
I'm not showing for I need to show for 100%.
Well, maybe if you tried to show for 100%,
you would have to increase your bids so much
to get all those impressions,
that is not actually worth it.
So I recommend first bidding
on that profit level bid based on profitability,
not based on reach, unless you have a lot of money,
and you just want to get your products out
to the whole world,
you can go ahead and do that.
You can buy TV advertisements,
and spend money on superbowl commercial commercials,
and get a lot of reach.
But make sure it's I would recommend making sure
it's actually profitable for your brand,
even if that means a long term strategy.
But regardless, so that's what it's based off.
So that allows you to see
what your search impression share last is
for rank and budget,
if you're losing some full budget,
say that's at 50%.
And you're profitable on that campaign.
I'm going guys, what are you doing,
you can increase your budget
still have the same profitability on that campaign.
But suddenly, boom, you're showing
for so many more people,
you're getting more sales and conversions.
It just makes so much sense.
If you got a proper campaign, increase the budget,
and you'll get an idea
of how much you can increase it by looking at this here.
If this has a number here, and it is a profitable campaign,
then you are essentially leaving money on the table
by not increasing your budgets.
Unless you have a cash flow problem.
But even then, with e-commerce stores,
the cash flow cycle is very, very short,
when you're getting paid for those products
from your Shopify distribution,
it's not like you're you're waiting months and months.
Yes, you have to buy products.
But even if you're doing, if you're doing drop shipping,
you'll pay for them once the order comes in
with that money that's being used
by the cost paid by the customer.
So it just makes sense.
So yeah, that's how you check out search impression share
in the Google Ads account
that's in the shopping campaign.
It's exactly the same for search campaigns.
The difference is quality score,
and you'll be able to see the quality score
on the keyword level for shopping products
and shopping campaigns,
you can't see the quality score,
but you can basically infer it
by the quality of your product feed.
Okay, that's it for today.
Was this video helpful for you?
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If you do have any questions at all about budgets,
and anything else I've talked about today,
please leave a comment below.
Ask your question,
and I'll get back to you really quickly.
I check comments every single day.
If you want to learn more
about how you can grow your e-commerce store
with Google ads, Facebook ads, email marketing,
how to improve the operations,
how to find new products, check out my channel.
I make a lot of videos just like this one,
and consider subscribing
as you grow your e-commerce store alongside me.
Thanks so much for watching
and I hope to see you in the next video.
Bye for now.
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