Adwords Help Blog

A few tidbits from our experts.

Adwords Management – Campaign Limited By Budget…

As an Adwords management company, one of the more cryptic messages that Adwords gives us from time to time is ‘Campaign Limited By Budget’.

But what does this really mean? In raw, technical terms, it means that you missed out on a significant number of ad impressions because your budget was too low. If you raised your budget, you’d get more impressions.

But what does that mean? Now we’re talking. You see it’s not quite that simple. If you think about it, how many impressions you get depends on a variety of factors including:

  1. Your daily budget
  2. Your average cost per click
  3. Your click-through rate

Why have I brought these up? Because these are the variables you can change to get rid of this ‘limited by daily budget’ status that Google flashes up in orange as if to panic you.

There’s nothing wrong with being limited by budget. In fact, if you’re not limited by budget, that means you’re going all out to get every impression there is for your chosen keywords. Many advertisers probably don’t want that as part of the ir strategy, but instead just want to achieve a certain amount of revenue at a certain cost.

So Is It Ok To Be ‘Limited By Budget’

No – it’s not ok. People who get this message, get it because they are either under-spending or overpaying for clicks. The easy solution is to raise your budget as instructed by Google. That’s fine and if you want to grow your business quickly then that’s probably your best option, provided you’re seeing the ROI you’re after.

What If I Don’t Want To Increase My Budget?

If you haven’t got extra budget to hand, you can still take advantage of this friendly piece of advice because, if you’re seeing this message and you don’t have any more money to throw at Adwords, then you’ve got an opportunity to increase your campaign’s ROI instead. Remember, the problem here is that you’re using your budget up to eagerly, most likely because you’re:

1. Bidding high

2. Have a high CTR

Google has to display your ad sparingly because if it displayed it all the time your budget would be gone before the day is over. If you’re ads are set to accelerated delivery, your budget is most likely being used up long before their day is over.

In other words, you could still spend your daily budget with a lower CPC or a lower CTR. You are therefore overpaying for clicks or not being targeted enough with your ads.

The solutions:

1. Lower your max CPC 10% at a time, ensuring that your daily budget is still being used up each day. If you’re paying less for each click but still spending your daily budget then that means you’re getting more clicks for the same price. Result!

2. Lowering your CTR with more targeted ads. The lower your CTR, the more impressions are needed to get each click. Whilst a healthy CTR is always good for quality score, don’t be afraid to tone things down to make your ad more targeted. A more targeted ad might have a lower CTR, but it’ll also have a higher conversion rate.

Final Tip

Remember – the aim of the game is to spend your daily budget in the most cost effective way possible. That means keeping your CPC as low as possible and your conversion rate as high as possible. Whilst Google’s friendly ‘limited by budget’ doesn’t tell you the whole story, it does tell you that you’re not making the most of your campaigns.

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