The 80:20 rule (Pareto Principle), and it’s application to Google Ads

So here’s the thing. A lot of clients we come across spend a large proportion of their budget on Google Ads with no directly measurable benefit. Are they wasting their money? In short, yes.

Many Google Ads campaigns trundle along spending their budget each month and deliver broadly the same number of conversions month to month. But a deeper longer term analysis often reveals that the bulk of the business done is focused on a relatively small subset of keywords within each of the campaigns. This is classic 80:20 rule. In other words, most of the “work” of the campaign is being done by just 20% of the keywords and Ads being used.

So what about the other 80%? Usually we have found that spending money on them is a complete waste of money! Not only that but in cases where budget is limited they can also get in the way of the better performing keywords “stealing” budget from them and reducing the overall exposure of the Ads on the better keywords.

What that means in practice is that potentially you could be getting up to 5x the level of business you are currently getting for the same spend or simply just spending up to 5x less on your Google Ads marketing!

Talk to us today and get a Google Ads review.