What to Know:
– Search budget cannibalization occurs when multiple campaigns are competing for the same budget, leading to inefficient spending.
– Shared budgets allow advertisers to allocate a single budget across multiple campaigns, optimizing spend and avoiding cannibalization.
– Shared budgets can be set up at the campaign level or at the ad group level, depending on the advertiser’s needs.
– Advertisers should consider their campaign goals, performance data, and budget constraints when deciding whether to use shared budgets.
– Google Ads provides tools and features to help advertisers manage and optimize shared budgets effectively.
The Full Story:
Search budget cannibalization is a common challenge for advertisers who run multiple campaigns simultaneously. When multiple campaigns are competing for the same budget, it can lead to inefficient spending and suboptimal results. To avoid this issue and maximize ad spend, advertisers can consider using shared budgets.
Shared budgets allow advertisers to allocate a single budget across multiple campaigns, ensuring that the overall spend is optimized and campaigns do not cannibalize each other. With shared budgets, advertisers can set a maximum spend limit for all the campaigns included in the shared budget, and Google Ads will automatically distribute the budget based on the performance of each campaign.
Shared budgets can be set up at the campaign level or at the ad group level, depending on the advertiser’s needs. Setting up a shared budget at the campaign level means that all campaigns within the shared budget will have access to the same budget pool. This is useful when advertisers want to allocate a fixed budget across multiple campaigns with similar goals.
On the other hand, setting up a shared budget at the ad group level allows advertisers to allocate budget dynamically based on the performance of individual ad groups within a campaign. This is beneficial when advertisers want to prioritize spending on high-performing ad groups and allocate less budget to underperforming ones.
When deciding whether to use shared budgets, advertisers should consider their campaign goals, performance data, and budget constraints. Shared budgets are particularly useful when advertisers have limited budgets and want to ensure that their spend is optimized across multiple campaigns. It can also be beneficial for advertisers who want to simplify budget management and avoid the hassle of manually adjusting budgets for each campaign.
Google Ads provides several tools and features to help advertisers manage and optimize shared budgets effectively. The Budget Simulator tool allows advertisers to estimate the impact of different budget allocations on their campaign performance. This can help advertisers make informed decisions about how to distribute their budget across campaigns.
Additionally, the Shared Budgets page in Google Ads provides a comprehensive overview of all shared budgets and their performance. Advertisers can easily monitor the spend and performance of each campaign within a shared budget and make adjustments as needed.
In conclusion, search budget cannibalization can hinder the effectiveness of advertising campaigns. To avoid overspending and maximize ad spend, advertisers can consider using shared budgets. By allocating a single budget across multiple campaigns, advertisers can optimize their spend and ensure that campaigns do not compete with each other for budget. Google Ads provides tools and features to help advertisers manage and optimize shared budgets effectively, allowing them to make the most of their advertising budget.
Original article: https://www.searchenginejournal.com/how-to-avoid-search-budget-cannibalization-for-a-better-share-of-spend/494903/