E-commerce
September 30, 2026
Are you wondering how to optimize your Google Ads budget and keywords without losing profitability? The key is to link every decision to a measurable goal, such as a specific return on investment, and to test new options cautiously.
The challenge lies in balancing the expansion of your reach with the control of your costs. A poorly allocated budget or keywords that are too broad can quickly eat into your margins.
So, how do you manage your Google Ads budget and keywords effectively? On the agenda:
When should you increase your advertising budget?
How do you choose the right keywords to bid on?
Should you activate the Google Search Network?
How do you remain effective while growing your campaigns?
What strategy should you adopt for testing new initiatives?
Let’s get started.
Summary
When should you increase your advertising budget on Google Ads?
Increasing your budget is not a decision to be taken lightly. The first step is to identify the campaigns that are "limited by budget" in your Google Ads interface. This status indicates that your ads could generate more results if they had more funds.
Next, assess whether each campaign is achieving its goal. For example, if you are aiming for a return on investment of 300% and three of your five campaigns exceed this threshold, these are good candidates for additional budget. You can then consider reallocating some of the funds from the two underperforming campaigns.
For new initiatives, set clear expectations from the start. Performance Max campaigns may offer a lower return on investment initially, while Dynamic Search Ads are often more effective. For top-of-funnel testing, prioritize softer goals like newsletter sign-ups or form submissions, which generate valuable first-party data.
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How do you determine if a campaign is limited by its budget?
The "limited by budget" status is a key indicator in Google Ads. It means your campaign is receiving more potential clicks than it can afford. To check this, look at the "Status" column in your campaigns table.
An insufficient budget can hinder data collection and prevent the algorithm from properly optimizing your bids. If a high-performing campaign shows this status, it is a strong signal to increase its budget.
Conversely, a campaign that is not meeting its goals does not necessarily deserve more funds. First, analyze its conversion rate and cost per acquisition. Sometimes, optimizing bids or ads is more relevant than increasing the budget.
Finally, for new campaigns, a limited budget can be a strategic choice to test without risk. The important thing is to define a test duration and precise success criteria before launching.
How to choose which keywords to bid on for your campaigns?
Before adding new keywords, determine the search intent behind each term. A keyword like "large leather sofas" shows high purchase intent, which is at the bottom of the funnel. Conversely, "living room furniture" is more generic and corresponds to a need at the top of the funnel.
Keywords at the top of the funnel generate more traffic but are less effective for converting. They are useful for brand awareness but must be closely monitored to avoid wasting your budget.
To start, focus on bottom-of-the-funnel keywords with broad match. For example, if your phrase "brown leather sofas" performs well in broad search, test its broad match version to reach variations like "leather sofa" or "luxury sofa".
Regularly consult the search terms report to identify irrelevant queries and add negative keywords. This practice is essential for maintaining the quality of your traffic.
What is the difference between keyword match types?
Google Ads offers several match types: broad, phrase, and exact. Broad match is the least restrictive. It allows your ads to appear for queries related to your keyword, including synonyms or variations.
For example, with the keyword "leather sofas" in broad match, your ad may appear for "fabric sofa" or "leather armchair". This expands your reach, but can also attract less qualified clicks.
Exact match is the most precise, but limits your traffic volume. Phrase match offers a balance between the two.
Google recommends broad match for automated campaigns, as it helps reach all relevant searches, especially when volume is low. However, take the time to understand the implications before adopting it. First, test on high-purchase-intent keywords and monitor performance closely.
Should you enable the Google Ads Search Network?
By default, new search campaigns are included in the Google Search Network. This network includes third-party partner sites that display Google ads in their internal search results or directories.
This network allows you to gain more visibility, but the traffic quality can be variable. In general, search partner traffic is less significant than that of Google directly, often representing about 10% of total clicks.
The main disadvantage is that Google does not provide detailed metrics for each partner site. It is therefore difficult to identify underperforming sites. Additionally, you cannot exclude specific partners: you either accept the entire network or opt out completely.
To analyze performance, use network segmentation in your reports. This will allow you to compare results between Google and its partners and decide if the option is worth it for your business.
How to analyze search network performance?
To evaluate the effectiveness of the search network, go to the "Segments" tab of your campaign and select "Network" then "Search partners". This view shows you the separate performances of Google and its partners.
Compare conversion rates, costs per acquisition, and returns on investment. If search partners show significantly lower performance, you may want to consider disabling this option.
Keep in mind that partner traffic can be useful for brand awareness, even if it converts less. This depends on your overall goals.
If you find that the search network generates a lot of clicks without conversions, it is probably best to focus solely on the Google network. This decision can improve your overall efficiency and simplify the management of your campaigns.
How to remain efficient while developing your campaigns?
To grow without losing profitability, it is crucial to set realistic expectations and understand Google Ads parameters. Start by establishing an overall goal for your account, for example a 400% return on investment to ensure profitability.
Next, look at the return on investment for each campaign. Some will exceed the target, others will not. For those that excel, analyze their impression share. A high share means your ads are being shown in most relevant auctions.
"Search impression share" is the most important metric. If it is at 60% and the campaign is generating a 5-to-1 return, consider lowering your target return on ad spend to increase volume.
For campaigns that do not meet their goals, look for possible optimizations or adjust their targets. A top-of-funnel campaign will never perform like a high-purchase-intent campaign. It therefore makes sense to set different goals for them.
How to set realistic ROI goals?
An ROI goal should reflect your profit margin and your fixed costs. If your margin is 30%, a return on ad spend of 4 to 1 may be necessary to be profitable after other expenses.
For top-of-funnel campaigns, goals should be different. They serve to generate awareness and data, not necessarily direct sales. Set goals like cost per sign-up or cost per lead.
It is important to review these goals regularly. Performance can change with seasonality, competition, or changes to your site.
Do not hesitate to adjust your goals based on real data. If a campaign largely exceeds its goal, you can either increase its budget or lower its goal to gain more volume. The opposite is true for underperforming campaigns.
What strategy should be adopted to test new advertising initiatives?
Testing new initiatives is essential to stay competitive, but it must be done methodically. First, define what you want to measure: a new type of campaign, a new objective, or a new channel.
For top-of-funnel testing, focus on lead generation or sign-up objectives. These actions produce first-party data that you can reuse for your remarketing campaigns or to personalize your communications.
Performance Max campaigns can be interesting for reaching new audiences, but expect a lower return on investment initially. Dynamic Search Ads are often more effective at capturing existing demand.
Allocate a dedicated testing budget, separate from your main campaigns. Set a clear testing duration and success criteria. If the results are not conclusive after this period, stop the test and reallocate the budget to campaigns that work.
How to use the search terms report to optimize your keywords?
The search terms report is a valuable tool for refining your keyword strategy. It shows the exact queries that triggered your ads, allowing you to identify opportunities and waste.
Analyze this report regularly to find negative keywords. If a query generates many clicks but no conversions, add it as a negative keyword to avoid unnecessary spending.
You can also discover new, relevant keyword variations that you hadn't considered. Add them to your campaigns to expand your reach.
For broad match campaigns, this report is even more crucial. It allows you to control where your ads appear and adjust your bids accordingly. Active monitoring is the key to maintaining a good quality score and a reasonable cost per click.
How does Qstomy help improve the profitability of your Google Ads campaigns?
Qstomy, the Shopify AI agent, can complement your advertising efforts by optimizing your traffic conversion. By guiding visitors toward purchasing through personalized recommendations, upsell and cross-sell suggestions, and efficient package tracking, Qstomy increases the value of every paid click.
A better conversion rate means a better return on investment for your campaigns. Qstomy also helps reduce costs by improving the customer experience and automating part of the after-sales service, which frees up time to focus on your advertising strategy.
By integrating Qstomy into your Shopify store, you create a virtuous cycle: your ads attract visitors, and the AI agent transforms them into satisfied customers. This global approach is more effective than simply increasing your advertising budget without improving the rest of the experience.
To go further, discover how to increase sales with smart product recommendations or how to personalize chatbot responses with Shopify customer data.
Which checklist should you follow to optimize your Google Ads budget and keywords?
Here is a concise checklist to guide you through optimizing your Google Ads campaigns.
In brief
Budget: Increase campaigns "limited by budget" that are meeting their goals.
Keywords: Test broad match on high-intent search terms.
Search Network: Analyze partner performance before making a decision.
Goals: Set different return on investment targets depending on the funnel stage.
Tracking: Review the search terms report to add negative keywords.
FAQ
When should I increase my budget? When a high-performing campaign is limited by budget and meets its return on investment goals.
Which keywords should I test first? Those at the bottom of the funnel with good performance in phrase or exact match.
Should I disable the Search Network? If search partners generate clicks without conversions, yes.
To dive deeper, see our guide on how to optimize an e-commerce site for Google or learn how Google ranks Shopping ads.
To go further: How does Google Ads assemble responsive search ads? - Qstomy, Training an e-commerce chatbot with Shopify: using the right data without creating bad responses - Qstomy, Integrating customer service answers into an e-commerce SEO strategy useful to customers - Qstomy.
Enzo
September 30, 2026
