Budgets can be tough to set, especially in new campaigns. Setting the budget too high or low can lead to wasted spend, machine learning issues, and other account performance hiccups.
That’s why we’re going to spend this Ask the PPC column addressing the relationship between budgets, conversions, and cost per acquisition.
Jack from Colchester asks,
“I often see a daily budget of less than the total cost per conversion. Would having a higher daily budget than the cost per conversion improve conversions more by having enough budget per day?
For example, if our cost per conversion for a coffee machine is £120, does the daily budget matter?
Say we had a daily budget of £200 for 5 working days and the CPA is £120, versus a daily budget of £333 for 3 days. Technically, on the fifth day I would be getting 1 per day vs. on the third day I would get 2 per day. I could be over thinking this – I hope you can help.”
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Basic Rules Of Engagement
It’s important to remember that daily, monthly, and lifetime budgets behave differently.