A large golf booking company just launched a new app and they want to drive 50,000 installs before peak season hits. How should they set their campaign daily budget to help reach their target number of installs faster?
Set the campaign's daily budget initially less than planned and then double it right before the deadline.
Set the campaign's daily budget as planned initially and then fluctuate it on a weekly basis.
Set the campaign's daily budget as triple that originally planned.
Set the campaign's daily budget slightly higher than originally planned.
Explanation
Analysis of Correct Answer(s)
Setting the daily budget slightly higher than originally planned is the most effective strategy for a new Google App campaign aiming for rapid growth.
- Accelerates the Learning Phase: Google App campaigns rely on machine learning. A higher budget provides the system with more data (impressions, clicks, and installs) more quickly. This helps the campaign exit the learning phase faster, allowing it to optimize and scale efficiently to find the right users.
- Increases Bidding Competitiveness: A more generous budget signals to the system that the advertiser is willing to be more competitive in auctions, helping to capture a larger volume of installs in a shorter period.
Analysis of Incorrect Options
- Starting low and then doubling: This approach starves the campaign of crucial data during its initial learning period. A sudden, drastic increase in budget can shock the system, potentially resetting the learning phase and causing performance instability.
- Fluctuating the budget weekly: Frequent and significant budget changes disrupt the machine learning algorithm. The system performs best with consistent signals, and fluctuating budgets prevent it from establishing a stable performance pattern and optimizing effectively.
- Tripling the budget: While a higher budget is beneficial, a threefold increase is excessive and risky. It can lead to inefficient spending, a significantly higher cost-per-install (CPI), and wasted ad spend as the system struggles to find enough relevant users so quickly. A more measured increase is safer and more sustainable.