Hello. I am Yana Lyashenko, Google-logistician. In today’s video, I wanted to talk about product advertising campaigns and smart shopping. Today we will answer the question, formed directly by one of the clients. What question? Is it necessary to pay attention to the status with a limited budget, how it threatens the performance of smart shopping companies and standard companies, and to what level to increase the budget, based on the recommendations that the system issues.
What does the status “Limited by budget” mean?
Let’s understand what the status “Limited by budget” means. To paraphrase in simple terms, the system says – give me more money, otherwise I will cut the coverage. Sounds ugly?
Let’s turn to the help – we get a beautiful text. “The average budget is less than the recommended amount, I can give more coverage in proportion to the result”, other. I will say that this recommendation is worth paying attention to, and it’s great if it pops up on smart shopping campaigns. This says that if the current situation in terms of payback and profitability suits now, then the icon says that by increasing its proportional budget, you can make more profit. In pieces and in profitability.
There are two reasons to pay attention to the icon. First, it will give scaling without any alterations, dreary operational work, etc. Secondly, if you do not pay attention and do not remove the “Limited budget” status, the system will cut the coverage, which is what the certificate writes about. If the company is on a budget, the system will start to cut back on coverage. If it cuts the reach, then the conversions in units and in profitability will move not upwards, but downwards.
What to do when the status is “Limited by budget”?
If you find the status “Limited by budget”, the first thing to do is to analyze – before that, the profitability of advertising campaigns is positive, satisfying the goals or not? This is the first value. Second, you should pay attention and try to see the age of the appearance of the status. Some go to the advertising account regularly, and some – once a month. The farther in time the status appeared, the less opportunity a smart or a standard company has to taxi to the same levels that were expected before. If it appeared literally within a few days, then everything is OK. Fine. By increasing the budget, you will improve the performance of your advertising campaign.
If the status hangs for more than two or three weeks, then it’s bad news. After a budget increase, a smartshop or standard shopping ad campaign will only worsen in ROI values, but will not give feedback. In most cases. There is no guarantee that in this case it will not work in the pros.
We understand. Click on the status “Limited by budget” – a budget simulator pops up, which can show the budget in brackets recommended applying in the current conditions. For someone, the increase actually goes 10-20 dollars. For someone – an increase in the budget by 10-20 times from the current state. If we take, conditionally, 10 dollars, then wants 30-40 dollars. It was not possible to spend budget money.
What to do? You need to remove this status by applying the recommended budget. Why what is the budget, what is recommended? You can increase the budget by 50 percent, by 60 percent, or conditionally by some comfortable amount. This is not the recommended budget. Feel after a slight increase in a certain surge in coverage, traffic, and this leads to a reduction in the cost per click. This status does not disappear. This means that after a week or two, the system will again begin to issue something that will cut the coverage, as a kind of notification. We’ll have to decide to increase the budget.
If you do not initially raise by the recommended budget, in the subsequent period, after a slight increase in the budget, she will issue in the recommended, higher cost of expenses that she wants to set.
Reasons to increase the budget to the recommended value
I recommend increasing the budget to the recommended block that the system issues. There are several reasons.
First, the system tech setup that Google has. When you create any advertising campaign, initially, the method of budget impressions is defined as “standard evenly”. What does standard mean? This means that the system takes the budget that you set at the level of the advertising campaign. Takes approximate predictive averages of traffic for keywords or search queries that it can collect from the feed or based on keywords and, approximately, tries to stretch the budget over time so that it is enough to show up. There is one significant flaw in a beautiful story – it is too economical. Stretches the budget, not quite correctly distributes. Does not predict traffic volume for the whole day – there are not enough system resources to serve all the advertising campaigns in the world that exist. No, it strains too much into some kind of clear water. Because of what, advertising campaigns do not spend the advertising budget. This is bad enough. In fact, in the percentage of received impressions, you see a figure that is too low. It can look at the rate of 80-90 percent. She’s still on the budget. It is too low to really squeeze out the full potential that is on the market. Sooner or later, advertising campaigns may show the status “Limited by budget”.
The second nuance that emerges is, do not be afraid to increase the advertising budget, if before that the companies have done the result that suits them. On smart shopping, the appearance of the budget simulator icon in the active position indicates that smart can do more in conversions, and we see it on different advertising campaigns.
Profitability will sag at first. It’s normal when smart goes into retraining. The first three or four days are usually more expensive, then it starts to stabilize. Profitability, if it sags, then you won’t feel it particularly rudely in such a drawdown. If the profitability that a smart or standard product received was, well, not very steep and went beyond the break-even points, then after increasing the budget, only exacerbate this situation. If the first option – everything suited, excellent – then what are you doing? Increase the budget, at least for a day.
If you see that the budget has begun to be spent very actively, you don’t see conversions yet. Loading late. Just pause this ad campaign. Run the next day, but already clip the wings, on the budget, directly. This is the best option.
If budget spending, conversions, then it’s great, everything is going as it should, it is necessary according to the model that Google calculated based on the data.
If the result of the companies was bad, terrible or unsatisfactory in terms of profitability, things, then you need to turn off this advertising campaign, review it globally. If there is potential for dissegmentation, tear apart advertising campaigns, at least by price tag or product type, etc.
It is better to distribute the product range in different starts in the same or standard companies. Assign each product category a separate budget and profitability under it. Start up again. From scratch. It’s good to start from scratch. Smart in the first weeks is most effective. He swings. It gets better with time. This is better than what you will get after a few weeks with a company in the status of “Limited by budget”.
About what needs to be done is to get rid of it. To sum up, you will have to get rid of the status “Limited by budget”. Just not paying attention to him will not work. The system will force or turn off advertising campaigns completely, which naturally will not be particularly profitable. She was making profits. On the other hand, it will cut coverage or make it so unprofitable that you get very upset. You need to get rid of the “Limited by budget” status. The sooner you get rid of it, the less loss you will suffer. If we are talking about smart shopping in terms of its constant learning.
Answering the question, we raise it to a level that looks recommended in the block. It is important. Then, further along the way, you make a decision to stop the advertising campaign, reduce the advertising budget after a day, or vice versa, divide smart shopping and do some other nuances, of course.
Then you accept after the fact. “Limited by budget” advertising campaigns should not be. Only in some emergency cases, when there is not enough budget, money to replenish the advertising account. This shouldn’t go on forever.