How to Increase Google Display Network (GDN) and YouTube Ads Budgets Effectively
Increasing the budget for GDN and YouTube Ads can depend on many factors. Here are some important factors to consider when deciding whether to increase the budget for these two campaign types:
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1. Google Display Network (GDN)
Suppose you have run a GDN campaign to promote your product on Google's partner websites. After some time, you notice that the GDN ads have a click-through rate (CTR) below 1% and a conversion rate (CR) of 0.5%. Revenue from GDN ads remains stable and profitable for your business.
Detailed analysis:
- Click-through rate (CTR) indicates user engagement with an ad. In this case, CTR below 1% may show that the ad is not attracting enough attention from potential customers.
- Conversion rate (CR) is the share of users who move from viewing an ad to taking the desired action (for example, buying). Here, a CR of 0.5% shows that the GDN ads have a fairly low ability to turn viewers into customers. However, this does not mean GDN advertising has no value. You still need to analyze whether the revenue or value from these conversions exceeds the cost, using ROAS (Revenue/Ad spend).
Based on this analysis, you can consider increasing your GDN budget alongside these optimizations:
- Increase bids to improve ad visibility on websites or placements with good conversion rates or high CTR.
- Remove unsuitable or poorly performing placements, such as those with low CTR and no conversions.
- Improve ad quality and target audiences more precisely to increase conversion rate (CR), using targeting methods such as keywords, Topics, placements and Audiences.
- Optimize messaging and banners: make the message clear and appealing, use concise language, spark curiosity and encourage action. Banners should have an appealing, suitable design with a clear message. Use high-quality images with appropriate aspect ratios. Also track the performance of each message and banner, and run A/B tests to find the most effective variations.
- Alongside static banners, try GIF banners to attract more attention.
2. YouTube Ads
Suppose you have run a YouTube ad campaign with a click-through rate (CTR) of 0.5%, a conversion rate (CR) of 0.3%, and significantly rising revenue from YouTube ads.
Detailed analysis:
- A click-through rate (CTR) of 0.5% shows that the YouTube ads attract viewers and generate positive engagement, driving users to the website.
- A conversion rate (CR) of 0.3% shows that the YouTube ads can turn viewers into customers.
- Note that YouTube ads focus more on video-viewing behavior, so the purchase conversion rate may be low. To decide how to increase the YouTube Ads budget effectively, prioritize reviewing view rate alongside CTR and CR
Based on this analysis, you can consider increasing your YouTube ad budget by:
- Increasing bids to get more views on channels with a good view rate, while also helping increase click-through rate (CTR).
- Optimizing YouTube ads by choosing the right target customer groups and YouTube channels with appealing, relevant content.
- Optimizing YouTube placements by choosing channels whose content suits the target audience for your ads, and removing channels with unsuitable content or low view rate and CTR. This helps attract customers and improve ad performance. For example, if you sell real estate, showing ads on lottery channels is not very suitable
- To adapt to current user trends, switch from long videos to short videos to attract viewer attention and encourage specific conversion actions.
Conclusion
The cases above are hypothetical, and the decision to increase a budget also depends on other circumstances in each case. Always monitor and assess ad results using the relevant metrics above to ensure that increasing the budget is the right decision and benefits your business.
Optimus is an agency experienced in Google advertising services. We are happy to advise you and provide effective ad optimization services. Contact us now for support!!!
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