Case Study: Google Ads Budget Waste

Initial Ask:

Find budget waste in Client's Google Search Ads (AdWords).

 

The Problem:

The Client needed help reviewing how well their Google Search Ads budget is managed.

Because agencies charge a percentage of budget (among other fees), this makes clients vulnerable to agencies overspending in order to increase their fees. Especially, if a client has an open budget for as long as an agency meets their Cost per Acquisition goals.

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Solution:

Analytics Team at the Ad Shop reviewed Client's AdWords account and established that approximately 60% of the budget was wasted on wrong keywords or, in other words, keywords that never converted!

 

As crazy as it is, there were approx. 2,000 keywords on the account spending $20-$30 a month each. The craziest part is that almost all of these keywords remained on the account for months and were never disabled! 

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This was just mind-blowing since Client's Cost per Acquisition goals were set up based on their historical performance in Search Ads which turned out to be double of what they were supposed to.

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On the side note: Check out this simple way to check how many of your keywords never actually convert. Now, of course there are multiple other things to review, however, this should provide you with an overall understanding.

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Next Steps:

Obviously, the next step was to disable keywords that did not convert. However, a new problem presented itself which was that the client has pretty much maxed out their audience in Search Ads, which meant there were few ways to go to further grow their business:

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1. Make more emphasis on SEO

2. Implement Remarketing to increase an overall conversion rate (get more leads)

3. Employ new channels

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