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Having a Google AdWords campaign of a daily budget less than 10€ ($13, £8.5), I had these:

Setup 1

  • (1 campaign with 100% budget) x (3 ad groups) x (2 to 3 ads) = 40-60 clicks/day
  • long list of keywords per ad group
  • budget ends up being spent on the ad group with the highest traffic/competition

Setup 2

  • (3 campaigns with 1/3 of budget) x (3 ad groups) x (3 to 4 ads) = 20 clicks/day
  • less keywords per ad group but more closely related to the ads' purpose and phrasing, which summed up match and extend the keyword lists of Setup1
  • all around performance dropped and in some cases a lot (i.e. clicks)

Questions

In specific to small campaigns, which I feel are not addressed as much by most guides I found around the web:

  1. My assumption for the above is that the main reason for the drop in performance of Setup2 is the extremely low budget. Even though generic and simplistic, is this correct?
  2. How can I best manage the budget, so that it is spent more universally or up to a specific limit for each ad group?
  3. Finally, does anyone have any suggestions specific for campaigns of this level?
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Can you track conversions (and revenues) down to the keyword level? –  Prasad Mar 21 '13 at 10:23
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2 Answers 2

Depending on the competition and your keywords, AdWords campaigns are usually expensive; there's just no way around it.

That being said, I had a campaign that started small and quickly grew to 10-times my monthly budget. I was okay with that because my campaigns were net-profitable. That is, I was making more money than I was spending.

Inspiration aside, to answer your questions:

  1. Yes, a low budget will shut off your keywords much faster.

  2. Choose less common and less expensive keywords. The more competition, the more you'll pay.

  3. Do a lot of testing and keep doing what works. You should have a nice profitable campaign worked out after a few months. Plan for the long term and only be concerned with the "profitability" of the campaigns; not how much you're spending.

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I am completely agree with your first assumption, by limiting budget you are looking potential clicks from AdWords campaign.

If you are having limited budget, I suggest running your ads at full budget for at least one week. Then, analyze the traffic, click, time of click and best converting keywords.

Filter out best converting data from above analysis and start using ads scheduling.

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