Google Shopping Campaign Not Spending Full Budget – What To Do?

I recently came across this question and thought my reply would be helpful to those of you who have a Shopify store running Google Ads/Google Shopping to get sales.

I’m currently running a Google shopping campaign testing 5 products at a $10/day budget with $0.7 bid. It’s been 4 days and it’s not even spending the full budget (averaging $3-$7 a day) and the impressions are not a lot.

Would you recommend I increase the budget to speed up the process or create a new campaign with a bigger budget?

Much appreciated!

This is quite a common questions with people who are new to Google Ads & Google Shopping.

The first thing I’d say is to give it some time. In my experience, it takes at least 14 days for a campaign to start properly optimising. Four days is simply not enough time.

Next, did you look at the monthly search volume for the 5 products in the campaign? It could be that the number of searches per day isn’t enough to get you the number of clicks needed to max out your daily budget. You shouldn’t worry about if your campaign is spending your entire budget, the data points you should be looking at are: Am I getting sales? Is this ad profitable?

Also depending on your profit margins $0.70 per click (CPC) might be quite high. Assuming you have a profit margin of $20 at $0.70 per click you’d need a conversion rate of 3% just to break even. Never mind making any profit. I’d consider lowering that to $0.50 max.

That’s not to say it’s impossible to have a 3%+ conversion rate, some of my products have conversion rates in the region of 7-10% but they are pretty rare. However, if this is a high ticket product with a profit margin of $50+ then $0.70 CPC is completely fine as you have more wiggle room due to a higher profit margin.

Conclusion

In conclusion, just be more patient and give it some time. Hopefully, that helps you. As always if you have any questions please ask them below.

Thanks for reading, cheers!

Brendan

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