Defying the cuts: Overcoming Google Ads budget constraints

Struggling to make your Google Ads budget stretch further?

Discover how to optimize your campaigns, reduce waste, and maximize ROI, even in challenging economic times.

Economic pressures forcing marketers to re-evaluate spending

In today’s uncertain economic landscape, businesses across all industries are facing increasing pressure to justify every dollar spent in their Google Ads budget. Paid search advertising, once a cornerstone of digital marketing strategies, is not immune to these cuts. Whether a company is experiencing downturns or undergoing strategic changes, advertising teams must navigate shrinking budgets while proving the value of every ad dollar. As companies grapple with rising costs and shifting consumer behaviors, advertising teams are being asked to do more with less – reducing paid search spend while still delivering measurable results.

How can you maximize Paid Search ROI at a time of shrinking budgets?

This blog explores the growing trend of budget cuts in paid search advertising and practical strategies to make your campaigns more efficient – backed by real life examples. 

The impact of Google Ads budget cuts on paid search 

It’s undeniable that economic conditions are influencing spending patterns in your Google Ads budget. This shift in spending priorities has created a more competitive landscape for advertisers, driving up costs and making it increasingly challenging to achieve desired ROI.

Several factors contribute to this trend:

• Increased competition: The competitive landscape in paid search has intensified, driving up costs per click (CPCs).
• Focus on ROI: Advertisers are demanding higher returns on their ad spend, pushing for optimization and efficiency. 
• Campaign performance: Measuring campaign performance through Google’s Auction Insights is challenging due to limited and inaccurate data, leading to “blind bidding” where marketers overbid to stay competitive, often driving up costs.
• Industry performance: Industries experiencing downturns might cut back on marketing expenses, including paid search.
• Internal priorities: Companies may reallocate marketing funds to other channels or departments based on performance and strategic goals.

How to thrive in the face of budget cuts

It’s essential to remember that the situation is dynamic. It’s not all doom and gloom. While the mentioned factors all play a role in determining budget allocations, there is a solution.  

Optimize your existing budget

• Reduce budget wastage: Identify and eliminate wasteful spending on brand terms that are already ranked #1 organically, monitor competitor infringements, and lower your CPCs by managing affiliate ad hijackers. 

• Stay ahead of competition: Monitor competitor activity in the Auction to capitalize on opportunities and minimize threats.
• Contextualize performance: Analyze market trends and competitor moves to optimize your campaigns. 

• Enhance ad messaging: Improve ad relevance and performance by analyzing top-performing ads and gaining creative insights.

By implementing these strategies, you can make your budget work harder, improve campaign performance, and achieve your marketing goals, even in challenging economic conditions.

Read on to reveal real life examples of brands who are thriving in the face of budget constraints by thriftily pivoting their strategy, informed by Adthena’s Search Intelligence. 

Customer success stories: Global brands are thriving amid budget cuts 

Several of our clients have successfully navigated budget cuts by harnessing the power of Adthena’s Search Intelligence.

Healthcare brand: thriving amidst market disruption

Faced with a -10% YoY revenue decline and significant budget cuts, this healthcare brand sought innovative solutions to maintain market presence. By leveraging Adthena’s suite of tools, including Brand Activator, Auto Takedown, and Performance Max insights, the company optimized paid search budgets, curtailed wasted spend on brand terms, and automated trademark infringement management. These actions not only saved over £100k in one year, which covered the cost of their entire Adthena subscription across all markets, but also freed up valuable team resources. 

“I’d rather cut Search Ads 360 than Adthena.” The brand’s Digital Marketing Director.

Furniture retailer: Defending market share amidst cuts

A large furniture retailer faced substantial budget cuts, forcing a realignment of priorities away from non-brand initiatives. By leveraging Adthena’s Local View, the retailer gained essential search insights on their local-level operations in four key DMAs. Tracking competitor activity, particularly brand infringements, proved invaluable. Additionally, Ask Arlo provided instant data points to inform future growth strategies in a cost-conscious environment.

Retail giant: Optimizing for brand awareness with limited budget

Faced with a $10 million budget cut and a pivot towards brand awareness, this UK retail giant sought to optimize its marketing spend. Using Adthena’s Market Share insights, we helped the retailer reveal disparities with competitors, identify growth opportunities, and secure continued investment in the platform.

Financial services company: Navigating challenges with data-driven insights

Faced with market fluctuations, rapid expansion, and significant budget cuts, this financial services company sought to optimize its marketing efforts. By expanding its use of Adthena’s Market Share and ad copy analysis, the company gained access to crucial data on competitors and industry benchmarks. This enabled them to efficiently manage multiple brands, identify optimization opportunities, and mitigate cannibalization. Adthena’s support helped the company demonstrate increased value amidst resource constraints, ultimately driving growth, and ROI.

Leading Bank: Defending brand and cutting costs 

Faced with budget cuts and staff reductions, this financial services company sought to optimize its marketing spend. By partnering with Adthena, the company leveraged weekly keyword-level reporting to make data-driven optimizations. This collaboration enabled the team to significantly reduce brand CPCs, from over $1.50 to as low as $0.10 per keyword, while maintaining brand visibility.

“Adthena is an essential tool in my brand defense strategy.” The brand’s PPC Manager.

Winning in a world of tight budgets

Decision making based on data-driven insights is no longer a luxury but a necessity for advertisers. By leveraging Adthena’s AI-powered Search Intelligence, you can make informed decisions about where to allocate your limited budget, when to pause spend and how to optimize your campaigns using real-time competitor insights.

While budget cuts can be daunting, they also present an opportunity to optimize your campaigns and drive efficiency. Adthena is more than just a tool; it’s a strategic partner that can help you thrive in challenging economic times. In fact, the value of Adthena becomes even clearer during times of economic uncertainty, when proving ROI is paramount. Solutions like Brand Activator can be indispensable in achieving these goals. By identifying and eliminating wasteful spend on brand terms, you can redirect those funds to higher-performing areas of your campaign. This not only boosts ROI but also justifies the initial investment in technology. In times of economic uncertainty, tools that deliver tangible results and a quick return on investment are invaluable.

Embracing our automation tools and machine learning can help you stretch your budget further and drive better results.

Book a demo today to learn more about how Adthena can support you.