How do I know if I’m spending too much on AdWords?
The answer to that question is that if you’re making money you can’t spend too much…. Because if you put £1 in, and get £2, £5, or even £10 out, then I think you’d agree that you’d put in as many £1 coins as you possibly could.
So, in theory you can’t spend too much IF it is being profitable. There’s always the question of cashflow – you have to decide how your business is structured and how you want it to grow. Maybe you don’t want to grow. Maybe you’re happy with things are, but that’s a management decision.
If you’re spending a lot of money and it’s LOSING you money, then yes, you’re spending too much! You need to pull your spend back until you can make it profitable and you know that you can get a good return on your investment.