As a digital marketer, one of the most common challenges I encounter is helping clients make the most of limited advertising budgets. In this guide, I’ll walk you through my proven strategy for optimizing Google Ads campaigns when working with budgets under $50 per day.
Start with Location Targeting
The first step in optimizing a small-budget campaign is to review and refine your location targeting. Here’s how:
1) Navigate to the Locations section in your Google Ads account
2) Analyze the cost per conversion for each targeted location
3) Drill down to postal code level for more granular data
4) Identify and exclude postal codes with high costs but low conversion rates
Pro tip: Avoid using radius targeting, as it prevents you from getting detailed location-type views and making granular optimizations.
Leverage Observational Audiences
When launching a campaign, I recommend using “observational” audiences liberally. This will provide valuable insights about your website visitors without restricting your reach. You can:
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Add multiple observational audiences to gather data
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Monitor their performance over time
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Exclude any audiences showing poor conversion rates
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Adjust bid modifications based on performance
Manage Keywords Strategically
Negative Keywords
Wait until you have sufficient data before adding negative keywords. Once you have enough search traffic:
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Review search terms regularly
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Identify keywords that drain budget without converting
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Create negative keyword lists for efficiency
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Apply these lists across relevant campaigns
Broad Match Keywords
While broad match keywords can be valuable for discovering long-tail opportunities, they need careful management when working with small budgets:
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Start with broad match to capture long-tail keywords
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Monitor performance closely
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Gradually reduce broad match keywords to 1-2 keywords
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Keep some broad match terms to discover new opportunities
Final Optimization Steps
If you’re still seeing “limited by budget” warnings after implementing these changes:
- Let the campaign run to gather conversion data
- Switch from manual bidding to maximize conversions
- Set an appropriate cost per conversion target
The Bottom Line
When working with budgets under $50 per day, you don’t need a manager to look after it. The key is to:
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Keep a very limited keywords list
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Target specific locations rather than broad areas
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Monitor and exclude underperforming audiences and locations
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Allow the system to gather enough data before making major changes
By following these guidelines, you can create effective campaigns even with limited budgets, without the need for constant management and adjustments.
