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So let's talk about the budget part now.
Now there are two ways in which an advertiser can decide what budgets they
should have for their campaigns. One, they could decide on the basis of the objective like what KPI are they actually
trying to drive? And second, they can decide on the basis of total monthly budgets or yearly budgets.
Now, as we discussed, there are two different ways in which an advertising company can decide the budget for the
campaigns. The first is objective based and the second is total budget. Now, let's look at an example for both of these
strategies. Now, let's say, Swiggy wants 1000 clicks in a day.
The keyword that they wish to target Quick Food has an average winning CPC bid of ₹10 which means that they
need ₹10,000 as their daily budgets, if they want to achieve their objective of 1000 clicks in a day. On the other hand,
if you talk about total budgets.
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Let's say Swiggy monthly marketing budget is 3 lakhs. So the average days per month is generally comes around
30.54 days in a month, which means their daily budget would be monthly budget divided by days per month. So the
daily budget is ₹9,868.
For those of you just starting out here's the good news. There is no minimum budget for Google ads. In practical
terms, though, you want enough budget to get answers in reasonable time. Because spending your budget gets you
data and only with sufficient data, you can see where your conversions are coming from, where you're wasting
spends and what you can do about it.
You first. Your first few weeks of running Google ads will be a learning exercise. You will get to know the keywords
and the ads that are getting people to convert on your website and how much you're paying for each visitor.

If you set your daily budget too low, it may be weeks before you start seeing enough conversions to know what's
working and what changes you have to make.
If you start out with too high a budget, you can spend more than expected while you are still learning what works
and before you know it, you need to make changes. Perhaps there are fundamental flaws in your offer or you have
set things up incorrectly. Things that you wish you would have caught earlier without having spent so much of your
available budget.
With a high budget, you'll have to be on your toes reacting quickly to deal with any ads and hype. With a high budget,
you will have to be on your toes reacting quickly to deal with any ads and high-volume keywords that are expensive.
With a high budget, you'll have to be on your toes, reacting quickly to deal with any ads and high-volume keywords
that are expensive and clearly not working. It's best to start with a modest budget whatever you are comfortable
with and increase your spending, once you see things are working.

The keyword planner is a great tool to determine the amount of available traffic and what the cost per click or CPCs
could be for a specific keyword in a certain geographic location.
This is a good starting point and would certainly give one a ballpark figure. As a minimum, I would make sure that the
campaign has enough budget for at least 50 clicks per day if you're targeting a small location.

You can usually determine a practical starting budget based on three important metrics.
The average cost per click, CPC of your keywords, your website conversion rate and your target cost per lead or
return on ad spend. But this in turn depends on many factors.
They vary by industry, geo-location, target audience, the searches device type, for example, desktop, mobile or
tablet, the quality of your ads, your bid strategy, ad position, which network you are showcasing your ads on, etc.
They can even differ by the time of the day and day of the week and if yours is a seasonal business, you can expect to
pay much more per click.
And if yours is a seasonal business, you can expect to pay much more per click in peak season.

That is, it all depends on how much your competitors are prepared to pay, how much you are prepared to pay, how
likely people are to click on your ads when they are shown? This will be optimised with your marketing objectives
and the historical data on ad campaigns, better targeting strategies and of course, the size of your business to
determine the feasibility of increasing the campaign budget.
The forecast tool helps give the client a simulation of their campaign results for a given budget. Although the data is
not 100% accurate, it still gives a sense of how the campaign would pan out.

There have been instances when the client has come up with higher budgets than required, and I have asked them to
reduce the daily spend and increase the campaign duration instead.
At the end of the day, you can always control your ad spend by changing your daily budget.
Sam has been given a monthly budget of 1.5 lakh rupees. He decides to split it across 30 days and decides that his
daily budget would be 5000 rupees. Looking at the scale of campaign and historical data, he feels that this would be a
good start.

Although the previous campaigns had a daily budget spend of 10,000 rupees, it is a good idea to start with a lower
budget and scale up as we optimise for conversions.
For accounts, where there is no historical data, one can start with a budget of 1000 rupees or whatever is suitable.
Please note that the applicable taxes will be charged according to the payment method that has been chosen.
Google ads gives you the flexibility of applying bid modifiers on different levels. Now it could be device, it could be
location, it could be audiences. So there are multiple factors that goes into applying bid modifier. So let's look at
them one by one. If you look at device-based bid modifiers, so you can manually up bid or down bid based on what
your business objective is.
So for example, if as a business, majority of your conversions come through calls. So then you can run only call only
ads and showcase them only on mobile. So you can apply like a negative 100% bid modifier on desktops and tablets,
which would mean that your ads would not be displayed on desktop and tablets and would only be eligible to
showcase on mobile.
The next option is to apply location-based bid modifiers. So let's say as a business, if you know that 90% of your
conversions come through metropolitan cities like Hyderabad, Delhi, Chennai, Mumbai. Then you can up bid your
bids on those cities, whereas on the other cities on or on the other rural towns, you can downvote your bids.
The third option in which you can apply your bid modifiers is your ad scheduling. So let's say if you run a late night
food delivery joint and you want your ads to be visible at the time slot, let's say 10:00 pm to 2:00 am. Then you can
specifically upweight your bid so that you can beat your competition in that market, in that timeframe, because that
is the only time you get your orders.
The fourth option of applying bid modifiers is you can apply bids on grey marketing lists. So let's say if someone has
already visited your website and you know, that this person is most likely to convert, we can always go ahead and
apply the, let's say +20% or +30% bid modifier on these audiences.
So the next time when they're searching for similar query, you are able to capture their attention and your ads
display them to on priority. And finally, you can also apply demographics-based bid modifiers. Let's say there's a
matrimonial website, which will only be targeting singles. So in this, you can apply bid modifiers, high bid modifiers of
let's say 50, 60% of your demographic audiences called singles and apply negative bid modifiers for the married
audience base.
Google AdWords is a diverse platform, with an amazing number of bidding strategies to fit every marketer's needs.
These strategies, for the sake of simplicity can be broadly divided into two. One, the manual bidding strategy and
second, the automated bidding strategy.
Let's understand the manual bidding strategy better. Manual bidding strategies allow you to control every aspect of
your bidding manually. These strategies rely on the expertise of the marketer or the simplicity of the tasks that they
want to achieve within a stipulated budget or a stipulated time.
The first of these bidding strategies is called CPM. CPM stands for cost per milli. Cost per milli is the cost you pay for
displaying your ad a thousand times in the search results. If your main objective is to create awareness about your
product or service, that is to stay on top of people's minds, then this is the best bidding type you can select. Let's take
an example.
If the main objective of your search ad is to just create top of mind awareness about your restaurant, which can be
achieved by displaying the ad in the search results and the clicks it gets hardly matter to you, then the right bidding
strategy to go for is the CPM bidding strategy.
A slightly advanced version of the same strategy is the vCPM or viewable CPM, which is available on a display
network only campaign. The advantage of this is that you only need to pay for the viewable ads. An ad is counted as
viewable when 50% of your ad shows up on the screen for one second or longer for display ads and two seconds or
longer for video ads. This strategy helps you optimise your costs and ensures your ad appears in a viewable
positioning on the given platform.
CPC, cost per click is the cost you pay for every click you receive. If the main objective of your campaign is to generate
leads or get people to engage with your website.
This is the best bidding type you can select. For example, if your main objective is to get people to open your site,
view the various cuisines on offer and get information about various dishes, you will need more clicks on your ads.
This is where you can use this bidding model.
CPA, cost per acquisition is the cost you pay for every acquisition you receive. If your main objective is to bring in
more sales or conversions, then this is the best bidding strategy to choose.
For example, if the main objective of your search ads is to collect your target customers' phone number, email
address, date of birth and anniversary date, so that you can provide a 30% discount on food at your restaurants on
those days.
Then, in such a scenario, you can use CPA as your bidding model. With it, you only need to pay for the number of
phone numbers that you are collecting through the forms on your website.

Now, these were the bidding strategies that were manual in nature that is manual bidding strategies. However,
Google also has automated bidding strategies which help the marketer achieve his or her goal in an easier manner
and eliminates the need for guesswork or manually analysing heaps of data, before setting the bids. There are 6
major strategies within automated bids and we will go through each of them in detail.
The first one is ‘Maximise for clicks’. This strategy focuses on maximising the number of clicks in the targeted budget.
Google automatically adjusts the bid amount to achieve this goal. So a marketer at this point should remember to set
the CPC limit so that Google doesn’t spend more than a given amount for each click. This strategy works when
getting the maximum number of clicks is your goal, irrespective of the type of audience; which is usually in the case
of brand awareness.
For example, if you are the marketer for a company that is entering the Indian market in the field of water purifiers
then, you already know that you have a lot of existing competition; whose recall value is very high. So, to create an
awareness for your brand, and to make the user familiar with your brand, you can use this strategy.

To do so, you can fix a certain budget, let’s say Rs. 20,000 for this strategy. Google will then alter your bid by
identifying the people who are most likely to click on your ad, and then increases the bid at that time so your ad is
visible. It also decreases the bid when it is less likely to be clicked; thus, getting you the maximum clicks in the budget
that you have set.
The second type of automated bidding strategy is the ‘Target Search page’. This strategy automatically raises or
lowers the bids to show an ad either on the first page or on the top of the page of Google’s search results, based on
the marketer’s requirements.
Once applied, it takes a couple of minutes for Google to alter the bids, which can then be altered multiple times in a
day. The choice of setting the initial bid lies with you, as you can either manually do it based on your own estimates
or allow Google to do it for you. At the same time, you can also define a bid limit to control the overall expenditure.
One thing to keep in mind is that it does not guarantee you the position since that is decided by the auctioning
process, which is affected by the competitor's bid as well as your quality score.

For example, If your restaurant is bidding at 10 INR to stay as the topmost search result, but your competitor bids 12
INR to display their ad on the top, then, before the next auction Google will increase your bid to let’s say 14 INR, if
you have opted for the top of search result option, and if it is lower than your bid limit, then it will allow you to regain
your spot.
The third type of automated bidding strategy is the ‘Target CPA’. It is a bidding strategy which allows you to sets bids
that help you get as many conversions as possible, within the target cost-per-acquisition (CPA) you set. This simply
means that it allows you to define the average amount you are willing to pay for a conversion.
It automatically adjusts the bids for every auction based on the vast data available with Google to help you achieve
the desired result. For example, if you are selling customised shirts which cost you Rs. 100 to produce, ship, and
transport, and you are selling it for Rs. 120, then, you would want to acquire a customer for a maximum of Rs. 20, to
at least get to break even. So, AdWords gives you the option to do just the same. You can set the CPA to Rs. 20 and it
will get you some acquisitions for a higher value and some for a lower value; thus, keeping the average equal to the
defined value.

The fourth type of bidding strategy is the ‘Enhanced CPC’ strategy. It allows you to optimise your bid to gain
maximum conversions. It is a mix of manual as well as automated bidding, and it works by increasing your bid in
scenarios where the likelihood of your conversion is more and reduces it in scenarios when the chances of conversion
are low. This decision is taken by Google, based on the data it collects over a period of time.
The important part to note here is that earlier, Google had a maximum threshold of 30% by which it could modify the
bid; but recently, it changed its policy, and now, that limit no longer exists.
For example, if you are selling a pair of headphones and your CPC is Rs. 15, but you realise that an enhanced CPC can
help your business and you change your strategy. Then, what Google will do — based on the historical data and its
complex algorithm for big data — is identify the scenarios where the chances of conversion are higher, and then,
increase your bid in those situations — to put you in an advantageous situation. It also works in the opposite manner
and can reduce your bids in situations where conversion is highly unlikely.

The firth type of automated bidding strategy is the ‘Target return on ad spends’. As the name suggests, it helps you
set an average return on your ad spend which is equal to the specified target value.
It views your conversion tracking and based on that, alters your bid to maximise the conversion value. Some
conversions might perform better and some might cost you more, but the average cost would eventually be as
specified. But this strategy can only be implemented if your campaign has more than 15 conversions in the past 30
days.
For example, if you are running an online ordering campaign for your restaurant, with a lead conversion of 10% based
on past data. So here, to acquire one customer at a CPC bid of let’s say 100 INR, you must spend 1,000 INR. And if on
an average, a customer value as 2000 INR, that means your ROAS is 200%. Now, if you have more than 15 such
conversions in the past 30 days, and you want to increase your ROAS to 400%, you can safely implement the target
returns on ad spend strategy, and Google, based on this data, will optimise your bids to achieve the goal.

```````
Now the sixth automated bidding strategy is ‘Target outranking share’: This bidding strategy allows you to be more
flexible and automates bidding across multiple campaigns; which in turn helps your ads outrank ads from another
domain. In this strategy, Google automatically increases or decreases your bids depending upon the competitor bids
to make sure your ads outrank ads from another domain. The key point to note here is that you can only target one
domain to outrank, for each bid strategy.
Let’s take the example of Flipkart's big billion day. All its competitors are well aware that due to heavy promotions
and deals available on Flipkart that day, a lot of Google searches will be made for Flipkart, and heavy traffic would be
directed to the search page. So, to take advantage of that situation, Amazon can use the target outranking share
strategy and specify the domain or the competitor as Flipkart. So, now if anyone searches for Flipkart, then,
Amazon’s ad would appear on the top and would immensely benefit the company.
This strategy, though very useful, is also extremely costly and is usually implemented by the big fish in the sea. If
historically, Amazon was paying Rs. 200 for a click, then for implementing this strategy, it might even have to pay as
high as Rs. 750 for a single click.

Since the objective of the campaign is to drive sales, Sam considers using smart bidding strategy over manual
bidding. Smart bidding is a subset of automated bit strategies that use machine learning to optimise for conversions
or conversion values in each and every auction. This would take much of the heavy lifting and guesswork out of
setting bids.
Since we want to optimise for conversion, Sam decides to go ahead with maximise conversions. This will
automatically set bids to help Sam get the most conversion for his campaigns, while spending the allocated budget.
When the business goal is to increase sales or leads and the campaign goal is to get as many conversions as possible
at a fixed budget or fixed ROI, choose the maximise conversions, target CPA smart bidding strategy.
When the business goal is to increase profit and campaign goal is to get as many conversions as possible at a fixed
budget or a fixed return on ad spend, choose the target ROAS, maximise conversion value bidding strategy. Using
historical information about your campaign and evaluating the contextual signals present at the auction time, the
maximise conversions bidding strategy automatically finds an optimal bid for your each ad every time it is eligible to
appear.

To evaluate results accurately, we recommend measuring performance over longer periods of time that have at least
30 conversions such as a month or longer. Advertisers that are using smart bidding must comply with applicable legal
requirements and Google ads policies.
As different keywords trigger different results. A business stands a chance of losing a lot of prospective clients. So, for
this purpose, Google AdWords provides the functionality of match type which can help you reach out to the right
audience based on your offerings and help you achieve your business objective.

The first match type is Exact Match. If you choose the exact match type, the search query of online visitors will trigger
your ad only if it matches the keywords exactly.
If the keyword you use in the search campaign is, let's say, restaurants near Bandra, then an online visitor who
searches for restaurants nearby or best restaurants near Bandra will not see the ad. Because these search queries do
not match the keywords completely.

For an exact match, the words in the search query need to be present in the same order as that of the keywords. The
syntax that is used for exact match type ads is denoted by square brackets, like this example, [Order chicken dishes].
Users who click on your ad when searching for that exact phrase are more likely to be interested in your product or
service. Also, using an exact match can reduce unwanted costs and keep conversion rates extremely high.
However, the downside of exact match types is that you will also lose out on the traffic as a result of those
restrictions. These specific search queries have lower search volumes and you won't get as many overall impressions.
To accommodate this, there are other match types that you can also use.

So, our next match type is phrase match. It is a match type which is used to trigger an ad, if the user searches for the
exact phrase that you have provided.
The ad is triggered, even if there are a couple of words before or after that phrase, as long as the phrase is present in
the exact form in the query. The syntax for the same is the keyword within the double inverted commas.
So if, in the previous example where the keyword was restaurants near Bandra, the match type is changed from exact
match to phrase match, then the ad would be triggered, even if the search query is best restaurants near Bandra or
family restaurants near Bandra, because the phrase that is restaurants near Bandra is there within that search query.

The advantage of phrase match is that it gives you more traffic compared to exact match, while at the same time it
remains relevant to your offering. However, the downside still remains that the impressions are only restricted to a
specific phrase.
So, to give us even more impressions, we have the next match type, Broad Match. It is the default match type for
AdWords and does not have any syntax. You just need to mention the keywords like restaurants nearby Bandra and
the ad would be triggered. If any of the above words are present in the search query or even if a synonym, singular
and a plural form or possible misspellings such as floor and flooring, related searches and other relevant variations
are present.

A search query such as restaurants in Mumbai, Bandra cafes and all such searches will allow your ad to be displayed,
but at the same time, search queries that are irrelevant to you, such as Bandra nearby stadium, restaurants, Chandni
Chowk might also trigger the ad which results in a lot of unwanted costs as well as traffic, which is not relevant.
Therefore, you should be careful while using this match type and use another match type along with it to optimise
the results. This match type is called Negative Match. As the name suggests, negative keywords help to exclude
certain terms, so that the ad is only triggered at the most relevant point.
Or in simple terms, it allows you to select who not to target. The negative keyword can be added as exact, broad or
phrase type match and the respective syntax is followed, while adding the words in the negative keywords section of
your AdWords account.
So, if, in the previous example, we add the keywords, stadium and Chandni Chowk as negative keywords, then those
ads would not get triggered.

Sam decides to use a combination of phrase match and exact match. Under phrase match, ads may show up on
searches that include the meaning of your keyword. With phrase match, Sam can reach more searches than with
exact match and fewer searches than with broad match. Only showing his ads on the searches that include his
product or service.
For example, the keyboard hiking shoes will only trigger ads for searches like shoes for hiking, buy hiking shoes on
sale, men's hiking shoes or comfortable hiking sneakers.

Under exact match, ads may show up on searches that have the same meaning or same intent as the keyword.
For example, the keyword hiking shoes will only trigger ads for searches like hiking shoes, hiking shoe, shoes hiking,
etc. Of the three keyword matching options, exact match gives you the most control over who sees your ad but
reaches fewer searches than both phrase and broad match. Hence, Sam decides to go ahead with a combination of
exact and phrase match.
The conversion tracking process works slightly differently for each conversion source, but for each type besides
offline conversions, it tends to fall into one of these categories: with a tag, without a tag. You add a conversion
tracking tag or code snippet to your website or mobile app code.

When a customer clicks on your ad from Google search or selected Google Display network sites or when they view
your video ad, a temporary cookie is placed on the computer or mobile device. When they complete the defined
action, the system recognises the cookie through the code snippet you've added and you record a conversion.
Some kinds of conversion tracking don't require a tag. For example, to track phone calls from call extensions or call
only ads, you use a Google forwarding number to track when the call came from one of your ads and details like call
duration, call start and end time, and also the caller area code.
Also app downloads and in-app purchases from Google Play and local actions will automatically be recorded as
conversions and no tracking code is needed. Once you've set up conversion tracking, you can see data on
conversions, for your campaigns, ad groups, ads keywords. Viewing this data in your reports can help you understand
how your advertising helps you achieve important goals that are aligned to your business.

In the Google ads account, Sam follows the steps mentioned below. First clicks the tool icon in Google ads and under
measurement click on conversion. Next, in the summary, click on plus new conversion action and choose from four
kinds of conversion sources, you can track: website, app, phone calls or import.
Now enter your website domain and click. Scan in order to detect if your website has a global site tag. View a list of
URLs that you can track as conversions. Here you can set up conversions using a URL. Use this method if you want to
track a page load as a conversion and you don't need to customise your conversion tracking setup. This is the fastest
and easiest way to set up a conversion action.

Sam selects the conversion goal as purchase, because the campaign is focused on getting sales. After clicking on save
and continue, the system generates a tracking code. The tracking code needs to be pasted in the code of every page
of your website between the head tags.
To include your conversion tracking code, first paste, your global site tag then paste any event snippets that apply on
the page. Don't add more than one global site tag to each page, save the changes on your web page and that's it.
After successfully completing this process, Google ads would now be able to track all conversions happening on the
website.

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So let's talk about the budget part now.

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