Google Ads App Campaign: Budget gets limited, but increasing budget doubles my Cost per Install. How do I fix this?
I am running a Google Ads App Campaign focused on maximizing in-app purchases, with a cost per in-app action (purchase) target of Rs 100.
For example, if I set a budget of Rs 1000/day, the campaign initially performs well and I get around Rs 4-5 per install.
After a couple of days, Google starts showing "Limited by budget", even though the campaign was performing well on the Rs 1000/day budget and was giving results according to what I wanted. Then the campaign’s actual daily spend drops to around Rs 300-Rs 400 after that notice.
When I follow Google’s recommendation and increase the budget to around Rs 3000/day, the cost per install jumps to around Rs 8-10.
So I end up spending much more but getting almost the same number of installs, which makes the campaign unprofitable.
What is happening here and how should I scale this campaign without destroying the cost per install?