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Google Unveils "Budget Optimizer" for AdWords
By Devin Comiskey
April 19, 2005

In the ever-changing landscape of search engine marketing, Google debuted a new tool this month — the Budget Optimizer — designed to help AdWords customers automatically adjust their maximum keyword cost-per-click (CPC) amounts. According to Google's documentation, the Budget Optimizer will actively seek out the most clicks possible within a user's specified monthly or daily budget.

"The Budget Optimizer helps you reach your target spend every month without requiring a lot of work on your part. You can save time, eliminate the guesswork related to setting your CPCs, and enhance your return on investment," reads the introductory FAQ.

Google notes that the goal of the Budget Optimizer is simply to help users receive the highest number of clicks possible within a set budget. It stresses that the Budget Optimizer will not help achieve a specific ad position. Also, the Budget Optimizer is only available for campaigns with fewer than 10,000 keywords.

Adjusting keywords for optimal placement and high return on investment is difficult for many user, especially those trying to run a small business, so this tool may actually take some of the guess work off inexperienced users' shoulders. However, users may also see a downside to implementing the Budget Optimizer.

"With traditional CPC adjustments, you might not have consistently reached your target monthly spend in the past. But with the Budget Optimizer, which automatically applies your budget toward your highest-performing keywords, you're more likely to reach your target spend on a regular basis. This can affect your total ad costs," says Google's documentation.

Guaranteed budget results are not a part of the Budget Optimizer tool. But, Google maintains that the tool offers a more efficient, effective way of systematically managing a keyword campaign budget.

"The Budget Optimizer is automated and focused solely on managing your campaign to yield the highest number of clicks. It can react more quickly to traffic patterns and invest immediately in your higher-performing keywords. And it saves you considerable time and effort overall," says tool documentation.

Accordingly, the tool will determine the highest-performing keywords in a campaign and invest only in those keywords.

So how exactly does this new tool work?

According to Google, the Budget Optimizer tool first analyzes a user's target budget and projected keyword traffic (based on information from the AdWords Traffic Estimator). It then continually adjusts-and readjusts, based on the time and budget remaining in a user's 30-day cycle to bring the highest possible number of clicks (see corresponding sidebar above).

For more information, go to: https://adwords.google.com.

Devin Comiskey is the Managing Editor for ECommerce-Guide.com.

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