Fellow member of the list, Marcus Halberstram (fake name for privacy), asked:<\/p>\n\n\n\n
\n“I made the mistake of doubling our budget. […] The campaign ROAS was around 500%; it\u2019s now below 300%. CPC exploded.\u00a0<\/p>\n\n\n\n
How do you handle budget increases when campaigns are limited by budget?”<\/p>\n<\/blockquote>\n\n\n\n
Ouch! That’s a BIG drop in ROAS there. <\/p>\n\n\n\n
The reason CPCs exploded was caused by the campaign “overperforming” its ROAS target, combined with the drastic budget increase by Marcus.<\/p>\n\n\n\n
Remember:<\/strong> Google will try to spend as much as it can as long as you let it!<\/p>\n\n\n\nIf Google’s smart bidding is meeting its ROAS targets and you are suddenly giving it waaaay more budget to spend, it will spend it!<\/p>\n\n\n\n
However, the algorithms often get thrown off, spending a lot of money on clicks that do not convert.<\/p>\n\n\n\n
To prevent this, I have 3 things in place:<\/p>\n\n\n\n
1) Part of my SOP: instead of making massive changes to campaign budgets, I rarely increase budgets by more than 20% per week
2) I am a big fan of portfolio bid strategies with a CPC bid limit. This prevents exploding CPCs
3) Google Ads Script: campaign spend alerts. This script warns me when any campaign shows a significant (*) change in yesterday’s spend compared to the same day for the last 8 weeks. \u00a0<\/p>\n\n\n\n
(*): a change is considered “significant” when the delta is over 1.5 times the standard deviation <\/p>\n\n\n\n
– Nils<\/p>\n\n\n\n
PS: If you don’t know Marcus Halberstram, then don\u2019t worry, neither do most of his colleagues \ud83d\ude09<\/p>\n\n\n\n
PPS:\u00a0I’m trying to help some more PPC friends by answering questions via an ‘Ask Me Anything’ each Wednesday. If you’ve got a question to which my answer would benefit a larger part of the community, send it my way, and I’ll try to answer it \ud83d\ude42<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Fellow member of the list, Marcus Halberstram (fake name for privacy), asked: “I made the mistake of doubling our budget. […] The campaign ROAS was around 500%; it\u2019s now below 300%. CPC exploded.\u00a0 How do you handle budget increases when campaigns are limited by budget?” Ouch! That’s a BIG drop in ROAS there. The reason … Continue reading “[AMA] “How do you handle budget increases when campaigns are limited by budget?””<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1374","post","type-post","status-publish","format-standard","hentry","category-google-ads"],"yoast_head":"\n[AMA] "How do you handle budget increases when campaigns are limited by budget?" - Nils Rooijmans<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nilsrooijmans.com\/daily\/ama-how-do-you-handle-budget-increases-when-campaigns-are-limited-by-budget\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"[AMA] "How do you handle budget increases when campaigns are limited by budget?" - Nils Rooijmans\" \/>\n<meta property=\"og:description\" content=\"Fellow member of the list, Marcus Halberstram (fake name for privacy), asked: “I made the mistake of doubling our budget. 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