Google AdWords Launches Budget Optimizer

What's the Google Budget Optimizer(TM) tool?

The Google Budget Optimizerâ„¢ campaign management tool automatically adjusts your keyword Max CPCs on your behalf. All you need to do is set a target budget, and the Budget Optimizer will actively seek out the most clicks possible within that budget.

The Budget Optimizer helps you reach your target spend every month without requiring a lot of work on your part. You can save time, eliminate the guesswork related to setting your CPCs, and enhance your return on investment.

(Please note that the goal of the Budget Optimizer is simply to help you receive the highest number of clicks possible within your budget. The Budget Optimizer will not help you achieve a specific ad position.)

They certainly are going out of their way to make the ads as "self serve" as they possibly can. I do not manage many AdWords campaigns so I probably am not the best person to test this out, but it would be interesting to hear what effect this tool actually has on ROI.

With how far off Google is with day to day search volume / ad clickthrough suggestions it is interesting that they think people will trust a system which automatically adjusts bids for them based on a metric other than ROI. Of course some marketers do not want to share ROI data with Google.

I also believe that if a campaign is self funding there is no reason to put an arbitrary budget cap on it. Buy as many ads as you profitably can.

I am guessing that if you enable this feature you will want to enable it in ad groups where the keyword max CPCs and lead values are similar.

Mikkel spoke out against the use of budgeting tools recently (as older ones overspent on CPC), so it will be interesting to see if this one actually delivers on its claims.

A while back Danny Sullivan said search engines want to sell traffic on a per lead basis more than a per term basis, and clearly this is a step in that direction.

Published: April 6, 2005

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Comments

April 4, 2007 - 12:25pm

I tried it out on a campaign for a client who was purely interested in traffic and who had no conversion metrics for ROI. Even then it failed to deliver anything like the budget the client was looking for, and the number of clicks compared with the predicted number of clicks was pitiful.

Some really bizarre things happened, like disabling ads which didn't meet a minimum cpc, even though they should have been well within the threshold of what the client was prepared to pay.

Edwin
February 28, 2007 - 5:11am

Since i first started with AdWords, i have always had budget optimizer turned on. In a couple of days I'm going to turn of budget optimizer to see how my campaigns goes.

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