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A Guide to Google Ads Shared Budget in 2024

Google Ads Shared Budget is a savvy financial tool, designed to distribute your advertising dollars across multiple campaigns. Imagine having a pie – that’s your total budget.

Now, instead of deciding how much pie each person gets beforehand, you let them take slices as they need it, making sure everyone gets a fair share until the pie is gone.

That’s precisely how Shared Budget operates. It dynamically allocates funds from a centralized budget to various campaigns based on their needs and performance.

The primary function is to streamline budget management and ensure that not a single dollar from your advertising budget is left on the table.

In 2024, with the advertising landscape more competitive and complex than ever, a Shared Budget acts as your financial strategist, ensuring that your budget flexes and flows where it’s needed most, without manual intervention every time market conditions shift.

Let’s get right into it!

Benefits of Using a Shared Budget for Managing Advertising Spend Across Multiple Campaigns:

  1. Maximized Ad Exposure: In 2024, every second and every impression counts. A shared budget ensures that your ads don’t miss a beat. It dynamically reallocates funds to high-performing campaigns, maximizing your visibility where it’s proving most effective.
  2. Simplified Management: The digital advertising world is vast and intricate. A shared budget simplifies the management by centralizing control. Instead of micromanaging several individual campaign budgets, you oversee one, making adjustments more strategic and less of a daily hassle.
  3. Efficient Resource Utilization: Unlike the rigid, set-in-stone individual budgets of the past, a shared budget is fluid. It adapts in real-time, ensuring that a sudden opportunity in one campaign doesn’t go unexploited because its individual budget ran dry. It’s about being resourceful and responsive, traits that are gold in the fast-paced digital market of 2024.
  4. Cost-Effective: Over or underspending can be the bane of digital advertising. A shared budget is like having a smart financial advisor, ensuring your money is invested where it’s showing returns, and not a cent is wasted. In an era where ad spend efficiency can make or break businesses, this feature of shared budgets is not just beneficial; it’s essential.
  5. Strategic Agility: The market in 2024 is more dynamic than ever. Shared budgets allow you to be agile, to pivot without penalty. As campaign performances fluctuate, your budget shifts in tandem, ensuring that your strategy is always in lockstep with the most current data.

Setting Up a Shared Budget

Step-by-step process on how to set up a shared budget in Google Ads:

Setting up a shared budget in Google Ads is a straightforward process, but it requires attention to detail to ensure that your funds are allocated efficiently.

Here’s how you can set it up:

1. Navigate to the Tools icon in your Google Ads account.

2. Click the Budgets and bidding section.

3. Select the Shared budget.

4. Click the blue plus button to create a new budget.

Locating shared budget in Google Ads

5. Name your shared budget and enter the amount you want to allocate to it.

6. Select the campaigns you want to include in the shared budget.

7. Save your settings to apply the shared budget to the selected campaigns.

Tips on setting realistic budget amounts and distributing them effectively among campaigns:

Setting up your shared budget is only part of the task. Equally important is ensuring that the budget amount is realistic and that it’s distributed effectively.

Here are some tips:

  1. Understand Your Campaign Goals: Align your budget with your campaign objectives. If your goal is to drive sales, you might allocate more to campaigns with a higher conversion rate. Understanding what you aim to achieve is crucial for effective budget allocation.
  2. Analyze Historical Data: Use past performance data to inform your budget allocation. If certain campaigns have historically delivered a high ROI, it might be wise to allocate more funds to them.
  3. Consider Market Conditions: Be aware of any seasonal trends or market shifts that could influence campaign performance. Allocate your budget to capitalize on these trends.
  4. Monitor and Adjust Regularly: The digital market is dynamic. Regularly review your campaign performance and be prepared to adjust your budget allocation. A shared budget gives you the flexibility to reallocate funds quickly in response to performance changes.
  5. Set Clear Priorities: Not all campaigns are created equal. Decide which campaigns are most critical to your business objectives and allocate your budget accordingly.
  6. Plan for the Unexpected: Reserve a portion of your budget for unexpected opportunities or shifts in strategy. This ensures that you have the flexibility to capitalize on new trends or pivot your strategy if needed.

Best Practices for Managing Shared Budgets

Managing shared budgets in Google Ads requires a strategic approach, ensuring that every dollar is working effectively towards your campaign goals. Let’s delve into some best practices for optimizing your shared budgets in 2024.

1. Regular monitoring of campaign performance to ensure optimal budget allocation:

Routine checks on campaign performance are non-negotiable. It’s not just about tracking spend; it’s about understanding how that spend translates into results. Are your ads reaching the right audience? Are you seeing the desired actions from those interactions? Use tools like Google Analytics in conjunction with Google Ads to get a holistic view of your campaigns’ performance. Remember, data is your roadmap. Regular monitoring helps you understand where you are and guides where you need to go, ensuring your budget is always aligned with performance.

2. Adjusting shared budgets based on campaign performance and reallocating funds to high-performing campaigns:

Agility is key in digital marketing. As you monitor campaign performance, be prepared to pivot. If a particular campaign is outperforming others, it makes sense to fuel it further by reallocating budget towards it. Conversely, if a campaign is underperforming, consider scaling back and redirecting those funds. This isn’t about setting and forgetting. It’s a dynamic process, requiring continuous assessment and adjustment to ensure that your budget is not just spent, but spent wisely.

3. Utilizing automated bidding strategies and tools to enhance campaign performance with shared budgets:

In 2024, automation is not just a luxury; it’s a necessity. Platforms like Google Ads offer a range of automated bidding strategies, such as Maximize Clicks or Target CPA (Cost Per Acquisition). These tools leverage machine learning to optimize your bids in real-time, based on the likelihood of achieving your specified goal. Pairing a shared budget with automated bidding can result in a powerful synergy, ensuring that your campaigns are always bidding optimally without constant manual intervention.

4. Addressing common challenges such as uneven budget distribution, limited control over individual campaign budgets, and difficulty in tracking performance at the campaign level:

Shared budgets come with their set of challenges, but these can be mitigated with a proactive approach. If you’re facing uneven budget distribution, regular monitoring and adjustment are your best tools. For maintaining control at the campaign level, consider setting up shared budgets for groups of similar campaigns (e.g., by product line or target audience) rather than across all campaigns. This allows for more targeted budget allocation and performance tracking. Additionally, integrating your Google Ads with analytics tools can provide deeper insights, helping overcome the challenge of performance tracking at the campaign level.

Optimizing Campaigns within Shared Budgets

Optimizing campaigns within shared budgets is about fine-tuning every aspect of your advertising efforts to ensure maximum impact. Let’s explore the strategies and practices that can elevate your campaigns’ performance within the confines of a shared budget.

Strategies for effective keyword targeting, ad format testing, and audience targeting:

Keyword Targeting: Your keywords are the foundation of your campaigns. In 2024, it’s not just about the most popular keywords but the most relevant and high-intent ones. Use tools like Google’s Keyword Planner to research and select keywords that are closely aligned with your product and customer intent. Remember, specificity can drive better results than breadth. Additionally, keep refining your keyword list, adding negative keywords to filter out irrelevant traffic and save your budget for those who are truly interested.

Ad Format Testing: The digital landscape offers a variety of ad formats, from text to video to responsive ads. Each format resonates differently with different audiences. In the context of a shared budget, testing these formats becomes crucial. Analyze which formats drive the most engagement and conversions, then allocate more of your shared budget to these high-performing formats. A/B testing can be a powerful tool here, allowing you to compare different formats under similar conditions and make data-driven decisions.

Audience Targeting: Understanding and targeting your audience effectively can significantly enhance the performance of your campaigns. Utilize Google Ads’ targeting options to reach specific demographics, interests, or even user behaviors. Tailor your ads to speak directly to these segments. Remember, a message that resonates personally with the audience is more likely to drive action.

Importance of monitoring and adjusting bids, utilizing ad extensions, and optimizing landing pages:

Monitoring and Adjusting Bids: Within a shared budget, monitoring your bids and making necessary adjustments is crucial for ensuring that your funds are being utilized effectively. Utilize strategies like cost-per-click (CPC) or cost-per-acquisition (CPA) bidding to optimize your bids based on your campaign goals. Regularly review your bid strategies to ensure they align with your current campaign performance and market conditions.

Utilizing Ad Extensions: Ad extensions can significantly enhance the visibility and performance of your ads. Extensions such as sitelink, call, or location can provide additional information and encourage user interaction. They make your ads more appealing and informative, which can lead to higher click-through rates and better campaign performance. Regularly review and update your ad extensions to ensure they remain relevant and effective.

Optimizing Landing Pages: The journey doesn’t end at the click; your landing pages play a pivotal role in converting interest into action. Ensure that your landing pages are aligned with your ad’s message and offer a seamless user experience. They should be fast, mobile-friendly, and easy to navigate. A/B testing different elements on the page can help you understand what works best for converting visitors into customers.

Leveraging remarketing to re-engage potential customers and improve conversion rates:

Remarketing: One of the most powerful tools in a digital marketer’s arsenal is the ability to re-engage with individuals who have already shown interest in your products or services. Remarketing allows you to target these users with tailored ads, reminding them of their initial interest and nudging them towards conversion. In the context of a shared budget, allocating funds to remarketing campaigns can be incredibly cost-effective, as you’re investing in users who are already partway through the conversion funnel.

Addressing Common Challenges and Misconceptions

In the dynamic world of Google Ads, managing a shared budget can introduce specific challenges and misconceptions. Understanding these potential pitfalls and knowing how to navigate them can make the difference between a good campaign and a great one.

Discussing potential drawbacks like loss of control over individual campaign spending and delivery settings:

One common concern with shared budgets is the perceived loss of control over individual campaign spending. With funds distributed dynamically, there’s a worry that some campaigns might consume more budget than intended, leaving others underfunded. Additionally, the inability to set unique delivery settings for each campaign under a shared budget can feel limiting, especially if different campaigns require different pacing.

However, these drawbacks can be mitigated. Regular monitoring and performance analysis allow you to identify which campaigns are using more budget and adjust their settings or the shared budget parameters accordingly. While shared budgets mean some loss of granular control, the trade-off is a more fluid and potentially more efficient allocation of funds across your campaigns.

Solutions for overcoming challenges such as poor landing page conversion rates, managing negative keywords, and avoiding technical mistakes in PPC campaigns:

  1. Improving Poor Landing Page Conversion Rates:
    • The quality of your landing page significantly influences your conversion rates. Ensure your landing pages are relevant, engaging, and aligned with your ad copy and keywords.
    • Use A/B testing to experiment with different elements of your landing page, such as the headline, call-to-action, or page layout. Analyze the results and implement changes that lead to higher conversion rates.
    • Optimize your landing pages for mobile users. With the increasing number of users accessing the internet via mobile devices, a mobile-friendly landing page is no longer optional.
  2. Managing Negative Keywords:
    • Regularly update and refine your negative keyword list. This ensures that your ads are not shown for search queries that are not relevant to your services, saving your budget for more qualified leads.
    • Analyze search query reports to identify irrelevant terms that trigger your ads. Adding these terms as negative keywords will help improve the quality of traffic and the overall performance of your campaigns.
    • Consider the match types for your negative keywords. You may choose broad, phrase, or exact match types based on how tightly you want to control the search queries triggering your ads.
  3. Avoiding Technical Mistakes in PPC Campaigns:
    • Stay updated with the latest Google Ads features and best practices. The platform evolves rapidly, and being informed can help you avoid common pitfalls.
    • Double-check your campaign settings, such as targeting options, bid strategies, and budget limits. Simple oversights in these settings can lead to significant issues in your campaign performance.
    • Utilize Google Ads’ automation and intelligence features, but also keep a human oversight. Automation can make campaign management more efficient, but regular human monitoring is irreplaceable for nuanced decision-making and strategy adjustments.

Transitioning Away from Shared Budgets

While shared budgets can streamline the allocation of funds across multiple campaigns, there might come a time when you need to transition away from them. Whether it’s due to changes in strategy, campaign structure, or simply a need for more granular control, understanding the process and alternatives is crucial.

Considerations and steps to take when removing a shared budget from your Google Ads account:

  1. Assess the Implication on Campaigns: Before making any changes, consider how this transition will affect your campaigns. Each campaign previously under the shared budget will need an individual budget, which might lead to a shift in performance and spending patterns.
  2. Allocate Individual Budgets: Plan and allocate individual budgets for each campaign. Ensure these budgets align with your campaign goals and account for historical spending and performance data.
  3. Steps to Remove a Shared Budget:

If you want to remove a shared budget, check out this guide from Google.

Alternatives to shared budgets, such as individual budgets, portfolio bid strategies, and automated rules for budget management:

  1. Individual Budgets: Assigning individual budgets to each campaign provides precise control over spending. This approach is beneficial if your campaigns have distinct goals or perform differently, requiring tailored budgeting strategies.
  2. Portfolio Bid Strategies: These strategies allow you to set a performance target (like CPA or ROAS) across multiple campaigns. While similar to shared budgets, portfolio bid strategies offer more control and optimization towards specific performance goals rather than just allocating spend.
  3. Automated Rules for Budget Management: Automated rules can help manage your budgets more efficiently. You can set rules to increase/decrease budgets, change bids, or pause campaigns based on performance metrics or dates. This provides a level of automation and control, ensuring your campaigns are always aligned with your strategic goals.

Transitioning away from shared budgets is a significant strategic move. It requires careful planning, a clear understanding of your campaign goals, and meticulous budget allocation.

Whether you opt for individual budgets, portfolio bid strategies, or automated rules, the key is to ensure that your budgeting approach aligns with your overall campaign objectives and market conditions.

With the right strategy, this transition can lead to more controlled and effective campaign management, paving the way for optimized performance and success in your Google Ads campaigns in 2024.

Advanced Features and Strategies

In the ever-evolving world of digital advertising, staying ahead means leveraging every tool at your disposal. Google Ads offers a suite of advanced features and strategies that, when used effectively, can significantly enhance your campaign optimization and overall performance.

Google Ads Editor: This is a free, downloadable application that is a boon for marketers looking to manage their Google Ads campaigns efficiently. It allows you to work offline, make bulk changes, and quickly implement updates across multiple campaigns and accounts. Its user-friendly interface enables you to navigate through your campaigns with ease, making large-scale edits, like adjusting shared budgets or changing ad copy, a breeze. In the context of shared budgets, Google Ads Editor can be a particularly powerful tool for quickly reallocating budgets across various campaigns.

Scripts: Google Ads scripts provide a more granular level of control by allowing you to automate common procedures or interact with external data. For example, you could write a script to adjust your bids based on weather conditions, stock levels, or even the performance of different stock market indices. In terms of shared budgets, scripts can be used to automate budget adjustments based on campaign performance metrics, ensuring your budget is always optimized for the best-performing campaigns.

Conclusion

There you have it! Everything you need to know about Google Ads shared budget in 2024.

Your shared budget is a powerful tool, but like any tool, its effectiveness lies in how it’s used. Regularly revisit your campaign strategies, analyze the data with a critical eye, and be prepared to pivot as needed.

If you like this post, be sure to check out our top 11 Google Ads Bidding Strategies for B2B SaaS Businesses.

Michael Schroder

Michael Schroder

Michael Schroder is a Google Ads and SaaS marketing consultant. He has been managing 100k+ monthly ad spend and has worked with 200+ SaaS companies. The thing that makes him unique is his data-led approach and his focus on SaaS businesses.

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