The question isn't how much you should spend on PPC. It's where and how. We've managed over $40 million in ad spend, and the most common mistake we see is misallocation — money going to the wrong channels, campaigns, or audiences. Here's how to fix that.
The 70/20/10 Framework
Allocate 70% of your budget to proven, high-performing campaigns. These are your workhorses — brand campaigns, top keywords, retargeting. 20% goes to scaling and expanding what's working — new ad groups, audiences, and geographies that show promise. 10% goes to experimentation — new channels, creative formats, or untested audiences. This framework balances growth with stability.
Channel Allocation
Don't spread evenly across channels. Different channels serve different purposes:
Google Search — highest intent, best for capturing existing demand. This should be your first investment if you have search volume for your product/service.
Meta/Social — best for demand generation and prospecting. Works best for visual products, impulse purchases, and brands building awareness.
Display/Programmatic — awareness and retargeting. Don't expect direct conversions here; measure it on assisted conversions and brand lift.
Setting Budgets by Campaign Type
Brand campaigns need enough budget to capture all brand searches — usually low cost, high return. Non-brand campaigns need enough budget to avoid being limited by budget (check "Lost IS (Budget)" in Google Ads). If you're losing more than 15% impression share to budget, either increase the budget or narrow targeting to focus on the most profitable segments.
When to Increase vs. Cut Spend
Increase when: ROAS is above target consistently (2+ weeks), impression share is limited by budget, and there's untapped search volume. Cut when: ROAS has been declining for 2+ weeks despite optimization efforts, or the market has shifted (seasonal decline, competitive changes).
The Daily Budget Trap
Google can spend up to 2x your daily budget on any given day. Set daily budgets with this in mind, and track monthly spend against your actual monthly budget. Better yet, use shared budgets across related campaigns to prevent one campaign from starving another.
Smart budget management is the difference between breaking even and generating real profit from PPC. Calculate your ROAS to see where you stand.