We have a profitable low 5 figure monthly ad spend and we have to project a mid six figure monthly ad spend for funding purposes. We got to a profitable ad spend by snipping the campaigns that don't work. I really couldn't reliably tell anybody that I could go to mid six figure spend with anywhere near the same returns until I figure out what's working so I'm wondering if there is a way to give a more reliable ad projection than what we're currently doing or whether VC projections are as bullshit as this projection is turning out to be :)
You can try setting up a ACE (adwords campaign experiment) where you take your 'tried and true' exact/phrase match terms and then triple the bid.
See what happens to your ROI. https://support.google.com/adwords/editor/answer/1399246?hl=en
Honestly though, if the campaigns were running well and ROI only improved by cutting...you're projection is really an imaginative narrative.
Also - I'd try to find your cost per new customer, provided you're single channel and have a good working customer definition.
best,
Jeff
Answered 11 years ago
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