Recently I have run across numerous companies that have a set level of spend per month on Google adwords which keeps running month after month with no clarity on what the company is getting for this spend. In my opinion there is a better way to allocate marketing dollars. I can see how this happens. It is not hard to set-up a Google account, point it at some web pages and let it run. Then once it is running Google gives you performance reports on metrics like impressions and clicks. The harder part is working out how the spend relates business impact. So for example you are spending 10k per month getting 1,000 clicks. What does 1,000 clicks mean for your business? An alternative approach is to run a test with a fixed-term and fixed-spend. And when it is over look at metrics that matter to see what you got. Then decide if you need more of this or is something else performing better.

