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Any relationship between daily budget and CPA?
I’m running a search campaign for a plastic surgeon looking to generate leads. They are new to Google Ads so wanted to test the waters with a small budget ($20/day). Since starting the campaign in January, our cost/conv has been over $30 when using max cpc and has gone up to over $40 since we enabled max conversions two weeks ago. The campaign feels unproductive because we’re only getting leads every other day and historically, only 10% of those leads convert to actual patients. I’m wondering if there’s any guideline to how much higher my daily budget should be than my cost/conv for the campaign to be or if anyone has other suggestions. I have a meeting with my client next week and I’ll either need to have a way to improve the campaign’s performance or we’re ending it.
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1 Reply
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Work backwards. How much is a new client worth to them, once other costs have been covered? If it’s, say, $1000, and 10% of leads convert, then you’d be aiming for a CPL of $100 to break even. At $20/day, that’s 1 lead every 5 days at their current budget. That’s going to be very difficult to optimize, since you’re barely getting any actionable data.
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