To our valued clients,
We would like to inform you of major changes by Google.
What’s the change?
Google can now spend twice your daily budget but will maintain your monthly spend. For example, if your budget is $200/day, Google can now spend $400/day but not more than $6,000/month ($200/day*30 days in a month).
How does this impact my advertising?
AdWords is forcing businesses to spend their budgets twice as fast. What Google is essentially indirectly, but certainly knowingly, doing is raising the cost-per-click across all industries for all keywords. This is because each advertiser will be forced to spend more on Google AdWords.
Any business who runs out of budget mid-month will no longer generate any leads. This will result in these businesses either suffering until the following month with no new leads or increasing their budget. In both cases (i.e. suffer without leads or increase budget), it’s a win for Google. Even if the business doesn’t increase their budget, they would have spent more while they did have a budget forcing other businesses to also spend more. Which means when that company’s budget renews the following month, competition is even higher.
Similar to the book/movie “The Hunger Games”, Google is essentially forcing everyone who uses their platform to spend more aggressively.
We expect industries that are already saturated will see this impact slower.
What is Tastic Marketing doing?
So here’s the thing, we already have a solution to this issue but unfortunately, it won’t work long-term. Unless everyone advertising on Google AdWords made the necessary changes, advertising costs will go up industry-wide.
If Tastic Marketing was managing every AdWords account in your industry, this wouldn’t even be an issue. The problem is, generally speaking, people managing AdWords are anything but experts. So even though we have a solution, the rest of the industry will probably only find out Google made a change 6 months from now when it’s too late.
What should I do?
If you’re worried about how much you’re spending please let us know.
Aside from that, we’ll take it from here. We always have your best interests in mind and work hard to come up with optimizations so that we manage your budgets as best we can 🙂
Do you have any recommendations?
– For obvious reasons, SEO is more important than ever.
– If we haven’t already, we need to evaluate how your CRM, Google Analytics and remarketing are working together.
– All other recommendations would be client specific and we will reach out to you directly.
Is there an article I can read?
Read The Full Article, or summary below:
Google Doubles AdWords Budgets and Advertisers are Unhappy
“Google has made a significant change to the way AdWords budgets can be used, and the advertising community is not the least bit happy.
Campaigns are now able to spend up to twice their average daily budget. The means on high traffic days, costs could soar as high as double the budget you have set.
Advertisers will not ever be charged more than their monthly limit, which is the number of days in a month multiplied by your average daily budget.”