𝐒𝐞𝐭 𝐠𝐨𝐚𝐥𝐬 𝐭𝐡𝐚𝐭 𝐚𝐥𝐢𝐠𝐧 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬

When we want sales growth, we try to get more people to see our ads by bidding increases, spending more on advertising, and using more keywords. But when we want more profits, we have to be careful with our spending. We might lower our bids, adding negative keywords potentially, and spend less on things that aren't performing well. It's like a tug-of-war between making sales and making profits. These two goals can work against each other sometimes.

There are two important things to consider: your personal comfort level and your profit margin. 

First, think about how comfortable you are with taking risks. As a business owner, you have to be willing to take some risks, but it's important to know how risk-averse you are. Second, consider your profit margin. This is how much money you make compared to how much you spend. If you have a high profit margin, you have more flexibility. But if your profit margin is low, you have to be more careful with your spending to stay profitable. Understanding these factors will help you determine how fast or slow you should go with your advertising strategy. If you're focused on making a good profit, running an aggressive ad strategy may not be the best choice for you.

If you decide to try an aggressive ad strategy and then you see how much it's costing you, you might get really worried about making a profit. You'll probably have to quickly pull back because you're more focused on profits.

What phase is your product currently in? Is it in the growth or launch stage, or is it in the maintenance or profitability stage?

During the maintenance and profitability phase, we analyze the data to see what we can trim down. If your advertising costs are too high compared to your sales, you reduce your bids. If certain searches aren't generating sales for your product, you remove them. Similarly, if certain campaigns aren't performing well, you lower their budget. It's important for a product to maintain sales even if we decrease our advertising efforts. However, if your product heavily relies on ads for sales, slowing down or stopping the ads can result in low sales or even a significant decrease in sales. In such cases, it means your product is still in the growth phase.

To find out if you're no longer in the growth phase, you can check if your product is ranked well organically. You can do this by checking its ranking for keywords. Another way is to see what percentage of your sales come from ads. If most of your sales come from ads and you make big changes to them, it will have a huge impact on your sales. This means you're still in the growth phase and don't have a good organic ranking yet. If you stop or decrease your ads, you'll see a big drop in sales.

Once you have gained enough organic visibility, you can reduce your advertising efforts. Even if you decrease your ads, your product will still be visible to people and they will continue to make purchases.

To get the most value for your money, it's important to identify specific places where you can invest your advertising budget. Running an aggressive strategy with 100 different keywords may seem tempting, but it actually spreads out your spending. This means you're becoming more aggressive and spending more, which doesn't align with your profit goals. Instead, you should focus on a small number of keywords that will have the greatest impact. By being more conservative with your ad spending and prioritizing profitability, you can strategically transition from the growth phase to the maintenance phase while still maximizing profits.