Capturing Potential Business on a Limited Budget

Which option can you use to capture potential business on a limited budget?

  1. Bid allocation
  2. Ad automation
  3. Bid capping
  4. Ad delivery

Among the choices, the correct answer is d. Ad delivery and we will explain why in this article.

The internationally known conglomerate Google offers an advertising system called Google Ads (formerly known as Google AdWords), in which advertisers are said to “bid on certain keywords” so that their ads will appear and be clickable in Google’s pages for search results. Businesses choose to advertise their brands on Google through this service, for, as long as they use the appropriate keywords, their content would have higher chances of being promoted on the front pages of Google Search.

Google Ads allows the user to set an average value for their daily campaign budget which could be altered at any time they want. This daily budget is the median amount to spend everyday per month. Google claims that on certain days when ad traffic is prominently higher than usual, the user may be able to spend up to twice their daily budget.

Here, we will also explain the different ways to capture a potential business on a limited budget.

What is Google Ads?

First off, you might be wondering what exactly is Google Ads. It is an “online advertising solution” that businesses can use to promote themselves on different sites on the internet, including Google Search and YouTube. It likewise enables promoters to set exact goals for their adverts, customize targets and budgets, and start or stop the ads anytime they wish.

an image showing logo of google ads
Google Ads (helps you capture potential business on limited budget)

The service works by displaying your ad whenever people search for something online that are related to the products you offer. Google Ads allow three types of adverts to be displayed:

  • Search Network campaigns – these are normally in text form and can show on results pages of Google Search whenever people use it to search for similar products or services
  • Display Network campaigns – these are usually images that could be seen in various applications or websites that are visited
  • Video campaigns – as the name implies, these are videos, typically 6 to 15 seconds long, that are displayed before or during YouTube videos

Bidding in Google Ads

As you saw in the choices above, there are options for bidding when it comes to capturing potential business. While your concept of auctions might not be far off (higher bid secures a win), Google assures the consideration of both ad quality and bid value when determining the position of the advert. The company states that even if the opposing party has a higher bid, “you can still win a higher position—at a lower price—with highly relevant keywords and ads.”

  • Bid allocation

Also known in Google Ads as manual cost-per-click (CPC) bidding, this is a bidding method where you are able to manually set the maximum CPC amount for your adverts. You begin by fixing a maximum CPC bid (your default bid) for your whole group of ads. However, if you prefer setting separate bids per keyword, especially if you have observed these keywords to be more profitable. Doing this will allocate a larger part of your budget to your selected keywords.

For this to be more effective, you have to be knowledgeable on determining the most profitable keywords that are paired with your ads. You would not be able to get a great return if you do not properly allocate your bids.

  • Bid capping

As opposed to manual CPC bidding, bid capping (or maximize clicks) is one of Google Ads’ automated approaches to bidding which places bids for you so that you would be able to “get as many clicks as possible within your budget.” The service aims on accumulating clicks while consuming a target spend amount. However, if you have not set a certain target spend amount, any remaining daily budget will be used instead. Through this approach, you can establish a cap on bids which enables you to regulate how much you are willing to pay per click.

This approach could be helpful for someone who is not too confident in making use of the first method. Specifying a target spend amount is especially important, lest the budget you have set for other campaigns be utilized. Having a very limited budget may also not bring in a reasonable profit, considering that the amount of clicks Google Ads bring in through this method is dependent on the value of your budget.

Automated Advertising

Believe it or not, automated advertising is actually one of the newer concepts when it comes to advertising your business online. In general, this process involves — you guessed it — automating your endeavors in online advertising. This is so you could also focus on the other parts of your business.

Potential Business on Limited Budget

In Google Ads, this type of advertising could be found in their feature called Smart Campaigns. It is specially designed for small businesses that do not have staff devoted to promoting the brand. From creatives to delivery, nearly everything in this process is done automatically.

Of course, as with every process, there is a downside to this. Even Google itself declares that “results are not immediate” because the machine still has to undergo a learning period which usually lasts for a week or two. It is only after this period that you are able to observe the effect of the automated process. This period can be off-putting for some users, especially if they are expecting instant return of profit.

Ad Delivery

Like we mentioned earlier, ad delivery is the option that helps you capture potential business on a limited budget.

For Google Ads, determining which ad delivery method to use (either Standard or Accelerated) is important, particularly if your budget is limited.  Since your budget gets spent every time a potential customer engages with your ad, either method enables you to choose the pace at which your budget gets spent. However, if you do not have a limited budget, ad delivery would not work for you. This is because your budget would be high enough to last for an entire day of ad service.

  • Standard ad delivery

The ‘Standard’ ad delivery method is the default setting for all of your ad campaigns. To put it simply, your budget gets spent throughout the day in the most optimal way it can be. It aims to more properly reflect the targeted inventory user search, which includes searches done by users when looking for your service or product. The budget is effectively spent throughout the entire day, instead of exhausting it all at once. Google claims that this particular method is most useful for advertisers who want to have an even reach towards customers for the whole day, especially if these advertisers have a small budget amount.

It should be noted, though, that since this ad delivery method happens at different times throughout the day, your ad might not be visible every time you search for it. This is especially true if the campaign is heavily limited by budget.

  • Accelerated ad delivery

As opposed to the advertiser-friendly Standard ad delivery method, the Accelerated ad delivery method is not recommended for most users. This method spends your budget more rapidly (i.e. in an accelerated pace) than Standard delivery, meaning your limited budget might get exhausted immediately in the early hours of the day. Consequently, the time of exhaustion might not be reflective of the active hours of your potential customers. However, if you think that it’s best for your ads to be shown early on in the day (rather than the whole day), this ad delivery method could be the best fit for you.

Once you’ve reached the daily maximum spending limit of your budget, your ads would stop showing up and would only continue its display on the next day. Using this method has the possibility of charging you a higher CPC value, since prices tend to be more competitive during the early hours of the day. Running Accelerated delivery on a limited budget could likewise lead to your ads having a lower number of clicks and lower return-of-investment (ROI).


As a business entity, it is very important for you to implement marketing strategies, one of which could be advertising through the internet. Fortunately for many people like you, Google has come forward with a special advertising system called Google Ads. This program helps users display their ads on Google Search results pages, or even before or during YouTube videos.

Among all the options the Google Ads system offers its users, the one that helps you capture the most clicks (or potential customers) in a day, even on a limited budget, is the ad delivery option. You can choose either Standard or Accelerated ad delivery. Google Ads suggests to most advertisers to use Standard ad delivery because it is the more cost-efficient of the two, since it distributes your budget effectively within the day. This way, you would be able to get a more even number of clicks daily.

Also read: Bounded Rationality and the Family Business Decision-Making Process

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