On a consultation with on of our clients recently, I was able to narrow down where he was losing the most money and where the quickest
changes would make the biggest difference. He and I used the 80/20 rule to quickly spot where he could cut costs and save himself a bundle.

   Here’s his example, which you can follow to do the same thing in your accounts.

1. Sort your campaigns in descending order by ‘Cost.’

   You want to spend your time only where you’re spending the most money.

2. Look down the right to find ‘Cost per Conversion.’ Starting from the top, find the campaign(s) with
the highest average conversion cost.

 
 In this account, the ‘Decompression’ campaign shows the highest cost per conversion. And it also happens to be the 3rd biggest money
spender. So that’s the one we’ll look at.

   But there’s one other red flag that you don’t want to miss:  Our
client spent $430.30 on his ‘Chiro Only’ campaign without getting a single conversion. Don’t be tricked by those $0.00 cost-per-conversion
numbers. That’s actually a bigger loss than any of the others combined!
But since there were no conversions at all, it will be harder to pinpoint any one keyword or ad as the culprit. So it’s probably a good
idea just to pause that campaign for now and get to it later. That will save him money, for sure.

   So back to the ‘Decompression’ campaign.

3. Click on that Campaign & follow the same procedure with
the ad groups in it.

 
 ‘Spinal Decompression Therapy’ is costing the most money overall, and the most money per conversion. So we’re going to click on that ad
group and find what keywords or ads are creating the losses.

4. Click through to the ad group & follow the same procedure with your keywords.
 
 The keywords “spinal decompression” and [spinal+decompression] are clearly responsible for the lion’s share of the losses here. So we’ve narrowed down what’s gobbling up the money to 2 major keywords.

5. Now do the same thing with your ads.
   Sometimes it’s a bad ad or two that’s creating the drag on your
budget. So look and see if you’ve got an ad with an unusually high cost and cost per conversion.

   Our client sure did. Two of them.

6. Pause or delete the ad that’s costing you the most money.

 
 Be sure your numbers are statistically significant (see SplitTester)
before you do this. Our client did this and left active the ad that was getting him a $19.38 cost per conversion. That’s going to have a
terrific positive impact on his costs for this ad group.

7. Now go to work on the keywords
that are costing you the most money.

   Do Peel & Stick, reduce bids, pause or delete – do whatever you need to do to trim your spending. Doing it this way ensures that you’ve started where it’s going to make the biggest impact with the least amount of work.