How can I see if it is even possible to spend more money on a campaign or channel?
It‘s not always possible to spend more mony on a campaign or channel. You can check the capacity of the campaign in two ways:
Test! Spend more and see what happens - If the conversions are not rising but your ROAS gets worse the capacity of your channel or campaign is probably limited already – but please note: this can change due to seasonalities (Winterjackets will be probably have a higher demand in winter)
Check your growth-potential KPIs on your Media-platforms such as:
• Google Ads: Search Impression share
• Display Network: %Audience Share / %View share
You can use this metrics to see weather there is unused potential or even if increasing the budget has an effect (impressions going up but conversions do not)
What do we do if we don‘t have any budget caps on our ‚well performing‘ campaigns but want to spend more money?
In this case we‘d recommend to choose another campaign for optimization. If the bidder can‘t spend all of the money you told him to, there is no point of adding more budget to spend on top. If you are in charge of Paid Search and you are working with portfolios – check if you can increase the budget on the whole campaign portfolio.
What do we do if we shift budgets to ‚hidden champions‘ but the ROAS is getting worse?
This is anormal scenario. Once you increase the pressure on a campaign by adding more budget to spend, it‘s expected that the ROAS will decrease. Hence it‘s important to monitor carefully additional revenue in respect to costs and conversions. Once you reached your target ROAS you should stop adding more budget.
In general: If a campaign is important to generate mostly new users the ROAS is supposed to be lower
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