If you are on a very limited search engine marketing budget, you face two options when it comes to budgeting: either spread your budget out over the whole month (divide your monthly budget by 30) or spend it until it’s gone, regardless if you use up your budget before the end of the month. Intuitively, you might think it is better to spread it out, but in our opinion, this is not really the case. Why? One word: data.
When you spread a small budget over a month’s time, you are going to generate very little data for any one day, and it will take the whole month to generate sufficient data to do any kind of analysis. What kind of data are we talking about? Performance data. As we have said before, you do not know what keywords, ad copy, landing page copy, etc. will work. It doesn’t matter how smart you are. The only way to know what works is by testing.
So rather than spreading your budget out over a month, go ahead and run your campaign wide open (within the confines of a responsible biding strategy). You will most certainly burn through your budget quicker, but if the campaign generates quality leads or sales, who cares? Why wait to generate new business? Why generate business next week when you can generate it today?
It’s also better to do be able to analyze your campaign performance sooner than later, because you can then make changes to the next round of your campaign based on what you learn. Your next round should perform better than your first because you will have an idea of what works.
So…don’t think of your budget in terms of an amount to spend over a month’s time. Just think of it in terms of generating data and conversions as quickly as possible.