Key factors when setting a Microsoft search advertising budget

With effective implementation of Microsoft search advertising, you can make optimum use of your spend on a campaign. The amount is broadly based on monthly search campaign budget allocation and the maximum bid. These are the two key factors that determine your outgo. 

 Broadly, Microsoft search ad strategy is devised on basis of a pay per click cost model. In a PPC model, a user determines his or her base bid. It is essentially the maximum amount the former is ready to pay when someone happens to click on the ad.

It is important to note that the search ad customer is not charged more than the base bid and thus pay even end up paying less. Even a marginally higher amount than the next higher bid means that your ad is going to get displayed such is the search advertising user model.

Setting a Budget  

  1. When you launch a new campaign, you must choose a budget. You are also allowed to modify it for an ongoing campaign. You can set a budget according to your needs.
  2. By working out your spending limits, you can then put a tab on your search ad spend. There is also the flexibility of managing separate budgets on monthly basis for individual campaigns with Microsoft adCenter.
  3. To set a budget for each ad group independently, create a separate campaign for each group. You can easily modify your budget, if you follow certain pre-conditions.
  4. The budget that you set should ideally be an amount you ‘re very much comfortable with. Over a period of time, you can find out whether it’s adequate to get the desired results or you need to reallocate resources.
  5.  While setting the budget limit, keep in mind the fact that each campaign needs to have a separate provision for easier management. Prior to submitting your ad campaign, you are required to set your campaign budget amount and choose a budget option.
  6. You can modify the budget option or amount at any given time. Also, remember that the cost of a click gets deducted from a campaign budget after a user clicks on your advertisement.
  7. An ad display is affected by your campaign budget limits, to an extent. So you need to be careful while selecting the budgeting options. They offer you flexibility and control over your allocation.
  8. Daily budget is preferable if you want to make frequent changes – for instance, making up for increased demand because of a promotional campaign. Set the maximum limit to your budget that you wish to spend daily, apart ion from a monthly budget.
  9. The actual spend on daily basis could be lower or higher than the limit. The monthly spend however, will not exceed your monthly budget, which is a perfect option if there are not going to be frequent changes to your budget.

 In the next post, we shall know examine aspects related to setting a budget per month and how you can divide it across the month.