How I Reduced Marketing Budget for a High-Performing Google Ads Account Without Losing Sales

Touching a well-performing Google Ads campaign can feel like a marketer’s nightmare. But there’s a difference between getting good conversions and achieving a budget-efficient strategy that maximizes conversions at a lower cost. Recently, I tackled this challenge with a client, aiming to trim down ad spending without sacrificing conversions. Here’s how I approached it and what you should keep in mind.

1. Make Incremental Changes – Start Small

Start by making small, cautious adjustments. For example, instead of slashing budgets or changing target audiences instantly, try tweaking one minor element at a time, such as an ad extension or a keyword bid. Here’s my step-by-step:

• Implement Minor Adjustments First: After each change, give it a couple of days to observe results. If you notice a dip in ROI, revert the change. If ROI holds steady or improves, continue.
• Gradual Budget Reductions: Once other optimizations are in place, begin reducing the budget slowly — by about 5% daily. Immediate cuts can have negative repercussions, but gradual adjustments allow for performance stabilization.

Here’s a simple illustration of how gradual changes stabilize performance, keeping conversion rates steady:

2. Prioritize Campaigns Based on ROI

Not all campaigns are equally impactful, so focus on the ones generating the highest ROI. Here’s how to start:

• Keep Top-Performing Campaigns: These are the main drivers of sales, so they should retain a significant share of the budget.
• Reduce Supporting Campaigns: Branding campaigns may be necessary, but if the primary goal is conversion efficiency, they can be reduced or paused temporarily.

Example priority list:

3. Review and Adjust Current Campaigns

Optimizing existing campaigns can lead to substantial savings without any performance drop. Here’s where to focus:

• Campaign Settings: Review ad sets, ad extensions, and audience segmentation.
• Ad Copy Variants: Test ad copies to identify which has the best CTR and ROI, then pause lower-performing versions to concentrate spend on proven winners.
• Bid Strategy: Small changes to bids on performing keywords can yield significant cost savings over time.

4. Optimize Keywords and Negative Keywords

One of the easiest ways to reduce spending is through careful keyword management:

• Refine Keyword Lists: Examine search terms for those that are underperforming or irrelevant, then add them to your negative keyword list.
• Focus on High-ROI Keywords: Remove or reduce bids for keywords that drive costs but not conversions.

Here’s a quick view of a sample keyword refinement strategy:

5. Fine-Tune Ad Copy for Better ROI

Your ad copy is one of the primary influencers of performance, and the right message can elevate ROI even with a lower budget:

• Personalize Ad Copy: Write ads with the customer journey in mind. This personalization can boost CTR and conversion rates while lowering CPC.
• Pause Underperforming Ads: Retain only those ads with the highest CTR and conversion rate to ensure budget efficiency.

6. Allocate Budget to High-Priority Campaigns Only

With a trimmed budget, efficiency is key. By reallocating budget from underperforming to high-priority campaigns, you can maintain conversion rates while lowering spend.

Tip: Allocate about 70% to 80% of the budget to main campaigns, with the remainder for remarketing and testing.

7. Experiment with Smart Campaigns

Google’s Smart Campaigns can be incredibly efficient, often delivering a better ROI than manual campaigns. Here’s how to test them out:

• Run a Trial: Start with a small budget, then gradually increase it if you observe positive results.
• Compare with Manual Campaigns: If Smart Campaigns perform better, consider pausing manual campaigns to conserve budget.

8. Leverage Remarketing Campaigns

Remarketing is often cheaper and highly effective for re-engaging visitors. Here’s how to refine it:

• Analyze and Adjust: Identify high-ROI remarketing campaigns and allocate budget accordingly.
• Reduce Low-Impact Remarketing Spend: If certain remarketing audiences are costing more than they’re worth, consider scaling back.

9. Transparent Client Communication

Budget reductions can impact performance, so it’s crucial to set realistic expectations with clients. Here’s what I found helpful:

• Regular Updates: Explain how changes affect performance, share progress, and discuss next steps.
• Share Realistic Projections: Show potential trade-offs in terms of conversions and lead quality.

Conclusion: Consistency and Careful Adjustments Lead to Lasting Results

Lowering a high-performing campaign’s budget can be daunting, but with small, mindful changes, it’s possible to trim costs without cutting conversions. The strategies above ensure you retain performance while saving on ad spend — a win-win for both the business and client. Remember, patience and data-driven adjustments make all the difference.