Why more money doesn't give you proportionally more leads

This is called diminishing returns. Say you spend $400 a month and get 10 leads, so each costs $40. If you were to double the budget to $800, you might get 15 leads, not 20, because the extra $400 would only buy 5 more, at around $80 each.

The reason is that your first dollars buy the best opportunities: the most relevant searches, in the best positions, from the people most likely to enquire. More budget reaches further down the list, to clicks that are less likely to convert or cost more.

If doubling your spend really did double your leads, it would usually mean your campaign wasn't working well before. Perhaps you were bidding too high and showing in positions you didn't need, so there were cheaper clicks available all along.

So there's no realistic way to put in a set amount and be certain of what comes back. But you can still get more leads for more money. Here's how.

If you're limited by budget

In your campaign list, look at the status column. If it says Limited by budget, Google could have shown your ads more often but ran out of money.

If that's the case, and your performance is good (you're getting leads at a cost you're happy with), raise your budget. Do it slowly, over a few days, not in one go, and check your results each time.

In theory, your cost per lead won't go up as you spend more, because the budget Google recommends is the amount it expects you can spend at the same cost per lead. But check it each time, because it could.

If you're not limited by budget

Then the money isn't the problem. You've run out of places to show. To get more leads, you need more opportunities. There are three ways.

1. Widen your locations

If you can serve a bigger area, add it. It's the simplest way to increase the number of people who could see your ad.

2. Find the keywords you're missing

This isn't necessarily about going broader. You may simply be missing keywords that people use. Use Keyword Planner, Google's free tool inside your account, to get ideas and see how often terms are searched. You'll find it under Tools, then Planning, then Keyword Planner.

3. Add your converting search terms as keywords

Look at your search terms report, which shows what people actually typed before clicking. Find the searches that turned into leads and make sure their core meaning is covered by a keyword.

Don't add the whole search. If it's very long and specific, nobody will ever type it again. Work out its core meaning and add that.

For example, for a first aid training business:

Keep the same rules as before: specific, relevant, and exact match to begin with.

A warning about Keyword Planner's numbers

Keyword Planner's search volumes tend to be low, especially for small locations. In 20 years of running accounts, I've found the real numbers are almost always a lot higher, and the smaller the area you choose, the more it underestimates. So treat its figures as a rough guide, not a limit.

The short version

More money in doesn't mean proportionally more leads back, because of diminishing returns. If you're limited by budget and performing well, raise your budget gradually. If you're not, add more opportunities: wider locations, missing keywords, and the core of your converting search terms.

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