How to Optimize Google Adwords Ad Campaign Even in Small Budget

Anyone can get started with a Google AdWords account today in few minutes. Yes, it is that simple as Google claims these days. Even a homemaker can manage an AdWords account successfully and get customers online. Let’s not intrude on Google’s marketing strategies, eespecially in India in 2012. Once you create an account in AdWords (though just for testing) you will know the complete story.

small budget management in Google adwords

Well, let’s not make a fuss about it.

You are a small business owner and you need to ensure better ROI. That’s it. What all you need to know is, with a Gmail account and as little as $5 balance in your AdWords account you can run an advertising campaign.

To none of our worries Google made every effort to attract, trap, help and serve businesses with online visibility.  Any online business whether small or large can use Google AdWords to its fullest potential. That is probably one of the strongest reasons why AdWords can still make 90% of Google’s total revenue till date.

That’s Google’s story and there are enough critics who can explain it better. Let us focus on your individual business goal.

How A small-scale advertiser can make use of limited AdWords budget effectively?

  • You cannot compete with big companies having big budgets
  • You cannot play with too many keywords and experiment with your daily spends.
  • You don’t have enough budgets to set first page bid for most of the highly competitive keywords
  • You cannot create overly promotional ad groups to increase rate of conversion

So, how will you manage this?

Running a small budget AdWords campaign profitably is a science more than an art. You need to narrow down your options and opportunities and make it as targeted as possible.

You need to have a better control on:

  • Selection of keywords, negative keywords, quality score
  • Number of ad groups and the way they generate clicks for you
  • How many potential customers will see your ads
  • Who all are seeing your ads , from where and when?
  • How many will click on your ads and actually reach to the desired page of action

There are too many things to look at and be perfect at when you have small budget. You cannot afford to make mistakes or consider “wait and watch” model.

How you increase the number of Click Through Rate (CTR) and decrease the Average CPC (Cost per Click) are the biggest concerns of small business owners. However, that is where experience and expertise come in.

Small budget AdWords Campaign guide:

A. Consider Google search only:

search and display network

When it comes to ensuring qualified and effective leads, Google Search Partner and Google Display Network are not as effective as Google search is. Remember, each penny matters to your daily budget and you really cannot look around anything than the best and the most productive display platform. Therefore, starting with only Google Search is a safer bet.

B. Target device based on the nature of your business:

Run Targeted Adwords Ads

In the campaign settings section of your AdWords account you will find a list of devices available to show your ads on such as Desktops/Laptops, Mobile devices and Tablets. You can select anyone or all three. Now you need to understand device specific user behavior. Targeting mobile device make sense when you run a restaurant booking, car hire or ticket reservation related ads. You cannot expect someone searching for a product or service on mobile phone will buy them immediately. Therefore, you need to make a choice judiciously and treat each device separately.

You can also include telephone numbers in your ads so that visitors can click and call your business directly. Google usually shows up to 10 ads (3 on top of organic search results and 7 on the side) on desktop/laptops and tablets. On mobile there is only space for total 5 ads (2 on top and 3 on side). Therefore, if you are not on top 2 on a mobile device, it is just waste of money and your effort.

C. Select keywords that give you better ROI:

Keyword Selection for Adwords

Keywords are the key to business success. Make sure you avoid keywords of higher cost per click (CPC). This does not mean you have to compromise on all relevant or targeted keywords. Here is how you go:

  1. Sign in to your AdWords account
  2. Click on keyword Tool option from main menu “Tools and Analysis”
  3. Put your keyword ideas to find competition and search volume based on relevancy, location, category, language and devices you choose. Select keywords with low competition but good search volume.
  4. Take a note of the best suitable keywords, not too many.
  5. Include brand name/ company name to those keywords. Branded keywords have low CPC than general keywords and they give you the highest conversion rate too.

For example, if you want to target auto repair related keywords, the CPC rate for the keyword “auto repair shop” will be higher than the branded keyword “ABC auto repair shop”. Adding your brand name “ABC” reduces CPC rate (as other advertisers will not target your brand as keyword), but the general head term added to it increase the CTR and conversion.

6.  You can also use long tail keywords instead of general search terms and avoid higher first page bid estimate.

For example, if you consider the target keyword “Italian Restaurant”, there are thousands of other restaurants in the city competing for it which increase its CPC and decrease your chance to bid on. Now if you include city, area, zip code or specific product or service description to it, the results could be different. Long tail keywords like “Italian Restaurant in Germany”, Italian Cuisine near Frankfurt”, “Italian Veneto near 12011” can dramatically decrease CPC rate, yet drive targeted customers to your site.

You can use Keyword tool like Long tail pro to find long tail keywords effectively.

D. Apply geo targeting for your campaign:

Geo target Adwords ad campaign

You can always display your ads on a specified location. Geo target your area by city, zip code and even radius around your business location. This ensures you are targeting only the people you want to.

E. Set specific time, date and day for the ad schedule:

Rules for managing adwords ads

You can run the ad campaign during peak business hours only and thus optimize the conversion rate. If you run special offers or offer coupons to attract customers, do it during slow hours.

F. Make use of “Opportunities” section”:

Adwords opportunities

Analyzing campaign performance and competition is also crucial. You need to know your stands (in terms of Clicks, CTR, impressions and Average positions) against other advertisers in your categories.

G. Use negative keywords carefully:

negative keywords in Adwords

Make a list of keywords that you don’t want to be visible for. This will save you from getting irrelevant clicks from unwanted traffic and optimize your spend per day.

For example, if your target keyword is “car repair shop”  and you don’t want visitors to find you for “used car” related terms, pick the term “used” as a negative keyword. However, don’t do it too often and in big numbers, else Google may stop running your ads for nearly all important keywords. This is not a healthy sign to block your ads for most of the generic keywords. You need to do it cautiously.

Thus, by following these quick AdWords tips you can optimize your small budget ad campaign on Google AdWords. What all you need is to understand the AdWords terms, their significance and impact on your ad spend. It is important that you combine all factors leading to less Max CPC, High CTR and High Average position.

Remember, managing AdWords account is not about spending money to run ads, but to save money and yet increase CTR. Specially bloggers can utilize those free $100 adwords coupon, which they get occasionally to start with Adwords and create an ad campaign for their blog. Small business owners, can start with a minimum budget, and see how effective their PPC campaign turns out to be.

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Article By
This is Debarup Mukherjee, owner of Techno World News a technology blog. My interests in Blogging, Digital Marketing, Social Media, SEO and other technology related stuffs.



  1. Bhaveek says

    Adwords has always been my first choice when in comes to advertising. But main challenge is in keywords selection, keeping your cost and ROI in right track.