The Importance of Allocating Enough Budget for Campaign Success
The Challenge: Limited Budget, Limited Impact
In digital marketing, just as in business, trying to do too much with too little often leads to underwhelming results. This is exactly the scenario that unfolded when running multiple campaigns with inadequate budgets. With 15 separate paid search campaigns and only a small amount of budget allocated to each, the performance was lacking. The campaigns struggled to generate enough Automated Qualified Leads (AQLs) to drive meaningful growth.
The core issue was clear: trying to stretch a limited budget across too many campaigns resulted in fewer clicks, less engagement, and ultimately, a lower return on investment (ROI). Without sufficient capital, these campaigns could not compete effectively, and the potential leads simply weren’t being captured.
The Strategy: Focusing Resources for Bigger Impact
The key to improving returns wasn’t dramatically increasing the overall spending but optimizing how the available budget was distributed. We decided to consolidate the campaigns, reducing the number from 15 to just 7. This allowed us to focus the budget on the highest potential opportunities and create a stronger presence in the paid search space.
By reallocating the same budget, we gave the priority campaigns enough financial support to compete, which paid off.
The Approach: Budget Reallocation for Efficiency
The strategy shift began in July, and the difference was immediately noticeable. Instead of continuing with a fragmented budget, we funneled more capital into the seven campaigns that showed the most promise.
- Average Daily Budget (January - June): $70 or less, resulting in around 2.9 clicks per day.
- Average CPC (January - June): $24 per click, meaning the limited budget severely restricted how many potential leads could even engage with the ads.
With this setup, it was nearly impossible to capture leads effectively. The low number of daily clicks made reaching the right audience difficult, and conversions were rare without more traffic.
Starting in July, the daily budget was increased to around $350/day. Alongside optimizations like refreshed ad copy and a hefty list of negative keywords, the average cost per click (CPC) dropped from $24 to about $18. This increase in budget, combined with strategic optimizations, boosted daily clicks from 2.9 to approximately 19.4. Now, the campaigns had the runway they needed to compete effectively in the paid search auction, leading to better performance across the board.
The Results: Boosting Every Metric
With the budget increase and strategic changes, the performance metrics skyrocketed.
The numbers speak for themselves:
Before the Restructure (January - June 2024)
- Clicks: 556
- Inquiries: 1
- Automated Qualified Leads (AQLs): 1
- Marketing Qualified Leads (MQLs): 0
- Bookings: $0
After the Restructure (July - August 2024)
- Clicks: 830
- Inquiries: 12
- Automated Qualified Leads (AQLs): 10
- Marketing Qualified Leads (MQLs): 2
- Bookings: $10,600
By reallocating the budget to focus on fewer, higher-priority campaigns, the return on investment increased dramatically. The campaigns were no longer held back by budget constraints, and as a result, the company saw a significant improvement in lead generation and revenue.
The Takeaway: Invest Where It Counts
In paid search, just like in any other area of business, the adage "you get what you pay for" holds. The results from this case highlight a fundamental lesson: if you want to capture meaningful leads and grow your business, you need to give your top campaigns enough budget to compete. Spreading resources too thin across too many campaigns only hampers your success.
By making strategic budget allocations and focusing on the highest potential opportunities, we were able to transform underperforming campaigns into significant growth drivers. When it comes to digital marketing, budget allocation is crucial—focusing your resources in the right areas can make all the difference in achieving your goals.
If you found these insights useful, contact us to schedule a discovery call today! Let’s work together to ensure you focus and invest in the campaigns that drive priority traffic.
