Fluctuations during the week
First of all, you should check whether the costs are distributed equally over all days of the week. In the B2B area, in particular, the costs at weekends can differ significantly from those during the week. If this is the case, the average costs per weekday and weekend day for the last month should first be determined. If you have enough data, the last 7 days may be sufficient, which would make the data even more up-to-date.
Then you should look at whether there is a seasonality in the account. If this is the case, check whether this affects the entire account. If this only applies to part of the account, the average costs from the previous weekday calculation can be used for the fixed part. For the variable part, one should rely on the values of the past year. Here it should be taken into account again whether there were any major changes in the account. It can be very helpful to have well-kept documentation beforehand.
If you want to know how much potential in your account is lost due to mere budget restrictions, you should also consider this. It can be helpful to look at the current budget and what Google is proposing to spend.
When you have finished the calculation, you should now have the following values:
- Average fixed costs per weekday
- Average fixed costs per weekend day
- Variable costs per month from last year
- Unused spend due to budget-constrained campaigns
To calculate the costs for the coming year every month, you still need the average number of days per year:
30.41 days a month
8.71 weekend days per month
21.75 working days per month
Other influencing factors
Another lever for more volume can also be found in the impression share. This shows the percentage of possible impressions for the booked keyword that the actual advertisement appeared. Here you should check whether there is still potential for relevant keywords. This also depends heavily on the booked keyword option. For example, a low impression share can be a good idea for a far-reaching or phrase group keyword, since you may not want to be played at the top of all search terms in these keywords. For exactly matching keywords, however, you should check the impression share again more closely and increase the bids for high-performance keywords. In addition to the keywords, there may also be potential at the location or device level.
A rapidly changing competitive environment naturally also has a direct impact on costs. Therefore, the auction data in the Google Ads account should also be taken into account when budgeting. From this, a forecast for future development should then be made.
Landing page changes
If you want to maintain certain profitability, changes on the landing page can also contribute to the costs. This means that the same number of conversions can be achieved by improving the conversion rate at a lower cost.
Optimization potential in the Google Ads account
What has not yet been considered is the optimization potential within the Google Ads account. Here switching to smart bidding can result in significant changes in performance. You can also buy significantly more or better traffic by expanding the keyword set.
This is just a rough estimate of where you can get your account with next year and what could theoretically be spent. In addition to the bare figures, strategic issues that go beyond the mere area of SEA should of course also be taken into account.