Do you want to know how the big companies spend their Google adwords marketing budgets ??
All companies spend their ad budget differently, but most successful companies share a common goal – maximum exposure. These big name brands will spend dearly to make sure that they are at the top of every Google AdWords network. In this post, we’ll share tips, tricks, and secrets of how these big companies are doing it and how small companies, with smaller budgets, can compete.
How the Big Names Spend
We work with companies that spend seven figures a month on AdWords. Even though they play in a completely different competitive landscape than other companies, there is still a lot that can be learned from their strategies. Though we can’t use their name or industry, we’ll share one of these companies as an example. We’ll call them Company A.
Company A spends millions ensuring they are top of mind. Even if you aren’t a customer, you think of Company A when you hear about products in their vertical. Their massive $100K to150K per month budget is broken down into the four Google networks: search, shopping, display, and video. We’ll round up slightly and say they spend 25% on display and video, 25% on shopping, and 50% on search. Their shopping campaigns produce the lowest cost-per-click and cost-per-conversion, yet those campaigns are not the main focus of their strategy. This strategy is fine because they are one of the top brands in their market. However, this does not translate well for smaller brands. Smaller brands just won’t have the budget to approach them head-on.
Money Doesn’t Equal Strength
With a search-campaign budget averaging between $25,000 and $75,000 a month, it is easy to miss little mistakes or dismiss them as a drop in the bucket. However, those little marketing mistakes can lead to massive amounts of extra spending. We estimate that they wasted up to $30,000 in about 3 months from misused AdWords spending. The two major problems were bad keywords that needed to be cleaned up and conflicting campaigns.
Make Every Dollar Count
With such a big budget set in AdWords, the system will find ways to spend it, even if it means using words like “the” and “for” as keywords. Keywords like this will water down your performance and cause account managers to make budget adjustments in error. Negative keywords can be difficult to pin down. All too often an AdWords account manager will look at the search term report and dismiss one or two irrelevant keywords thinking that they don’t account for enough to make a noticeable improvement in the ad group or campaign. The reality is that irrelevant search queries found in the search term report are the tip of the iceberg. In the aggregate, these search queries can cause a lot of damage and eat away at an advertisers’ budget. They are usually a symptom of poor keyword selection.
Let’s say Company A sold all different kinds of car rims. A good account will contain highly relevant keywords like “aluminum rims” or “18 inch chrome rims.” They would also restrict most of those keywords to phrase or exact match. If they didn’t and also included broad match types, those same keywords mentioned above could trigger Company A’s ads to appear in irrelevant search queries like “google chrome” and “aluminum recycling.”
You also want to be very careful that you keep your keywords separate with NO crossover between campaigns. All too often we see campaigns that have keywords shared with other campaigns. This leads to inefficient analysis and reporting and cause keyword cannibalization.
Competing with a 7-Figure Company?
If you are in a market competing against big-budget companies, it’s not the end of the world. They may have a lot of market share, but there is still room for you. You just have to know how they think and strategize. They are willing to pay to stay in the game. They always think in big numbers. They are continually working to extend their reach. They work to control the conversation in their market around their brand. And they always capitalize on their existing brand awareness.
Go Your Own Way
When it comes to marketing, every company has to find their own path. However, there are a few things we think every brand could benefit from no matter their size: look for needless spending, keep the brand and general campaigns separate, and always make sure you are prepared for growth by having a great mobile-friendly site. Everything should be as unique as your brand!