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Looking for advice with my agency handling my Google Ads account
Hi there,
How do I found out how much my agency wasted on advertising budget with 0 conversions and how much they spent on conversions?
What is the normal amount for % of the wasted advertising budget?
Thanks
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6 Replies
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Hi BackgroundCup,
That’s a very case by case situation that could vary based on your industry. Google Ads does need a handful of weeks to usually ramp up to it’s full potential but I would make sure you and the agency you work with have a set expectation for conversions for your account. You can always check your search term reports to see relevant your searches are to your business.
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what is your industry, conversion you follow and expected CPA.
some industires have very high CPCs and if your customer experience is not top notch your can easily get 1k$ spend on one keyword for just 100clicks.
if your conversion rate is shit, you get a conversion at 1k$/each
Pause keywords that match your industries with low volume of data may result in you having campaign only focusing on brand and very few keywords low funnel.
at the end of the year 20% of media could have been used for prospecting
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Set your tolerances to the agency and manage to that. Everyone has dead spend in accounts however by setting tolerances at a 1 year, 6 month, 3 month, 1 month, 14 days, 7 days, will help give guidance on what is acceptable to keep running and what either needs optimization or need to be shut off.
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Do you have access to your account? You could have another agency run an audit.
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There is no “normal” really. There are aggressive strategies wherein you target broadly to drive more sales. And conservative strategies wherein your target very specifically to drive a higher CPA with fewer conversions.
However, there are also best practices within negative keywords, bidding, etc., to avoid wasted ad spend. Search queries would be the most important thing to look at. If you have considerable ad spend on search terms that are obviously not relevant, that’s a red flag.
One tool that’s useful for search is The Lin – Rodnitzky Ratio. However, it’s only a guide and I believe the suggested numbers are too conservative now, given that many advertisers run full-funnel marketing though search.
[https://blog.adstage.io/2018/03/05/lin-rodnitzky-ratio](https://blog.adstage.io/2018/03/05/lin-rodnitzky-ratio)
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No budget should ever be “wasted”. At the start of any Ads campaign you do need to test, test and test again and that is learning what works and what does not work. At that time some cash has to be burnt, but it’s still helping you to make more sales longer term.
The key thing is the campaign(s) (along with every element of the user experience from the ad to the sale) should be constantly improving, constantly being worked on until they are functioning at an effective level. Once that is reached, you can just keep an eye on things to make sure it stays on track and also to react to any major changes in the marketplace.
The budget spent that does not lead directly to conversions in the first instance does also help your brand awareness for future sales.
You need to work out you KPIs (key performance indicators) and make your agency work to those. e.g. £xx cost per conversion. They have to be realistic and as I said it’s all about continuous improvement to reach (or exceed) your KPIs.
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