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Budget plan effectively for Search

Overview

Identify opportunities for growth. Collate the right data and insights in order to budget plan effectively for your Search activity. Use tools to simplify the process.

We discuss the complexities around budget forecasting and planning with advertisers regularly. How much should you budget for Search next quarter or next year? What do forecasts look like when you’re trying to grow volumes? What do they look like when you want to improve efficiency or increase market share?

Budget planning is typically a complicated and resource-intensive process involving multiple data sources and stakeholders, not to mention a degree of uncertainty. Many decision makers consult various forecast models (of Search query demand, return on investment, sales volume and so forth) to inform how their media budget is distributed amongst various Search campaigns.

On top of that, advertisers tell us that it’s important to understand what your key markets might do in the future (specifically in terms of consumer Search activity), how costs per click might change and how your competition might respond to changes.

A combination of the right data and insights can be incredibly beneficial when planning budgets. We can help inform your decisions; incorporating Google data and marketing mix models can cut down on the time expenditure whilst improving accuracy.

There are a few ways to go about solving the complexity:

  • Many Search sales forecasts are predicated on the supply of clicks, which in turn is dependent on consumer Search activity. Analysts at Google have access to a number of highly robust forecast models (linear and nonlinear) that can quickly generate how an advertiser’s market might look in the future with a good degree of accuracy.
  • We understand that some advertisers plan Search budgets more frequently than once per year. Retailers for example may wish to model their Search spend around dates in the calendar such as Boxing Day, New Year’s Day or Black Friday. Performance Planner is a new forecasting tool for monthly and quarterly budget planning of always-on performance campaigns. The tool highlights how to maximise conversions at any spend scenario by adjusting bids and budgets across campaigns. It’s available in Google Ads.
  • Marketing mix models are measurement solutions (multivariate regression models) used by many of our most sophisticated advertisers in order to understand the impact of various media sources on a given performance metric, such as sales. You can then allocate ad spend across channels based on the measured effect on return on investment.
  • Drafts and experiments: Drafts and experiments allow you to test and measure the impact of changes to your existing Google Ads Search and Display campaigns. Drafts let you prepare multiple changes to a campaign without affecting performance. You can leave and return to your draft to make additional changes at any point, or discard the draft altogether.

When you’re finished drafting your changes, you can apply your changes back to your original campaign. Alternatively, you can create an experiment from your draft to test how your changes perform against your original campaign.

  • Geo experiments: Advertisers have a fundamental need to quantify the effectiveness of their advertising. For Search ad spend, this information provides a basis for formulating strategies related to bidding, budgeting and campaign design. Geo experiments provide advertisers and account teams with a solution to measure causal, incremental effects of Google Ads on their key success metrics such as in-store and online sales, site visits or other conversion events that would not have occurred without the influence of your Google media investment.

Key takeaways

Collate the right data and insights in order to budget plan effectively for your Search activity.
Use tools to simplify the process and prove causality and incrementality.

Next steps

  • Performance Planner

    Take a look at Performance Planner and understand what different budget levels and targets could deliver for your business.

  • Learn more

    For advanced businesses that are advertising across multiple channels, learn about the benefits of marketing mix models and work with Google to understand budgeting opportunities.

  • One

    Performance Planner

    Take a look at Performance Planner and understand what different budget levels and targets could deliver for your business.

  • Two

    Learn more

    For advanced businesses that are advertising across multiple channels, learn about the benefits of marketing mix models and work with Google to understand budgeting opportunities.

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