PPCTV – Finger Burner Series – Shared Budget
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PPCTV – Finger Burner Series – Shared Budget

– Hi guys, Steve here, with another finger-burner video to save you getting your fingers burnt by another digital agency. I’m going to struggle on this week, I’ve got a sore throat, I think I’m losing my voice, but I’m gonna soldier on because I carried out five
performance reviews yesterday, it’s really fresh in my
mind what I was looking at. So the five performance
reviews were actually for the same prospect. They’re being managed
elsewhere, as you would expect, in a finger-burner video, and it made sense that he
had five different accounts, because there was a lot
of money being spent, and different areas of the business, and that’s fine, but what I wanted to address in this video is there are always telltale signs that your agency are out of their depth, I mean, there were so many things wrong in this performance review, but the one I wanted to address today was one that you could spot quite easily, and that was his agency’s
use of shared budgets in his account. So, in any given account
he might have said, “Right, okay, here’s
a hundred pounds a day “to spend on my campaigns,” and rather than, God forbid,
manage the bloody campaigns, what they’ve done, they’ve taken a hundred
pound and they’ve gone, “Oh right, well let’s just,
kind of, what we got here? “15 campaigns? “Right, shared budget, bang,
we’ll come back another time, “have a little look at this account.” And so frustrating, because not every campaign is the same. It’s not gonna have the
same cost-per-click, it’s not gonna have the
same cost-per-conversion, and that was definitely
true in his account. So if you could imagine all
your budget comes in at the top, you’ve then got your campaigns that eat up most of the budget ’cause they’re getting
the most search volume. Then the ones that gets
less search volume, and they’re getting a
little bit of the budget that’s not been eaten up
already by the top ones, and then you got the ones down here, and the problem is,
it’s the ones down here, and the ones in the middle, tend to have a very good
cost-per-conversion. The ones at the top with
all the competition, with the higher costs
for a click, and so on, they’re the ones getting all the clicks and spending all the money, but the cost-per-conversion
tends to be much, much higher, and it definitely was the case
for this prospect yesterday, because the cost-per-conversion
at the top was 200 pounds, the cost-per-conversions
down here were 20 pounds, so, flipping hell, if they had just reallocated
budget from those top campaigns to those bottom ones, he could have got 10 times
as many conversions per day than he was getting. And I mean, I’ve done
this performance review for the entire year to date, so this is a reasonable level of time that this has been going on, and there were thousands of pounds that I could just easily say, “Oh right, look, this has been done here, “this has been done here,” but it’s not the thousands of pounds in the wasted clicks spent, it’s that opportunity cost, because this guy’s jobs, they’re not cheap jobs, he can easily quote 50
grand plus for a job, and can you imagine how many
conversions he’s missed out, and the enquiries, each day, every day, for the entire year to date, what that has actually cost
in terms of lost revenue, and lost profits in the business? It’s mind-blowing, it really is, and it’s because the agency were lazy, and it wasn’t their money, and they were happy just squandering it and not really paying any close attention. So, that’s the lesson for this week. That is the lesson. If your agency uses shared budgets, kick ’em out the door, because they do not warrant
spending money with, because they cannot manage an account. If you wanna know any
other telltale signs, just comment in the boxes below, and I’ll be more than happy to help.

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