“How Much Should My Google Ads Budget Be?”

The answer to this question can be extremely varied. Take a look at our blog post as we detail some of the key considerations your businesses should be taking to decide how much money to put into your Google Ads budget.

As the old saying goes, you have to spend money to make money. In pay-per-click marketing, your monthly and annual budget is a huge factor of your PPC strategy and is an essential part of being successful.

Whether you’re curious about investing in PPC campaigns or you’ve already got campaigns running, it’s definitely worth taking a step back to analyse if you’re making the most out of your ad spend.

From small businesses to multinational companies, any spend on campaigns will need to prove its worth in relation to return on investment (ROI).

What’s a Google Ads Budget?

Google Ads Budget

A budget is how much money you commit to spending on your campaign. Usually, budgets are monthly – but they can be daily or set for a certain time frame.

In Google Ads, for example, advertisers can specify a monthly cap and set an average daily budget for their campaigns.  How much is spent could vary from day to day, but your campaign will not go over your monthly cap. On days where your ads are the most likely to generate a lot of traffic, you could spend up to double your daily budget. Those days are balanced by days where you spend below your daily budget.

Why Your Business Should Have a Budget

Unless you’re Google or Facebook, chances are you don’t have an unlimited budget. Therefore, setting a realistic budget and sticking to it is crucial. 

On a practical level, you need a Google Ads budget to make the best optimisation choices.

This is particularly the case in Google Ads, where every click you generate could represent a user on the road to converting or your money going down the drainpipe.

4 Top Considerations for Your Google Ads Budget

1. Your Business Objectives

To decide on an effective budget, you must have a clear understanding of what your business wants to achieve by running the PPC campaign.

What do you want from a user who clicks on your ad and visits your landing page? Whether this be to put them on the path to purchasing a product, signing a new client or simply to increase engagement from your audience, consider the value of each conversion to your brand.

2. Your Geographical Location

You need to know how far you want your ads to reach. The size of your target area will impact the size of your budget because of how much competition you will face.

If you’re looking to target locally, a smaller budget might be feasible as your audience size is smaller. But if you’re targeting nationally or globally, you might need to invest more into your campaign to reach your wide audience and to be on level with or outbid the competition.

3. Your Competitor’s Budget

Most businesses have some form of competition. Whether it be an organisation across the road that has the same target market, or an ecommerce company selling similar products and services.

Understanding your competitive landscape will influence your Google Ads Budget. There are tools available (like SEMRush) that give an idea of where your competitors are spending their PPC budgets and how much.

Use their budget as a guide, you don’t have to match it.

Who Are Your Competitors?

Curious to know what your competitors are up to? Different Gravy Digital are equipped with the tools and know-how to conduct your competitive research.

Get a free PPC review and no obligation consultation, contact us:

Book a meeting: michaelgoldman.co.uk/

Telephone: 0161 706 0004

Email: contact@differentgravydigital.co.uk

4. Collecting Your Estimates

To gather estimates and to see the profitability of your PPC campaigns, you will need to know your:

  • – Average CPC
  • – Target traffic volume
  • – Enquiry rate
  • – Conversion rate
  • – Average value of a customer

Your average cost-per-click (CPC) is the average amount Google will charge for a click on your ad. Tools like Google Keyword Planner offer estimates for CPC which can be used as a guideline.

Using Google Keyword Planner, you can select all the keywords you think could generate traffic, and Google will estimate your expected monthly clicks, how much it will cost and your average CPC. You can use this data to work out how many enquiries and conversions you could get.

Realistically, between 5 – 20% of your website visits will enquire about a product or service, whether that be by filling out a form or clicking your call button.

Then, consider how many of those enquiries you can expect to convert into paying customers. If you don’t know your conversion rate, assume it’s between 10 to 40% or your industry average.

For more information about conducting keyword research, visit our previous blog posts:

How Much Do Google Ads Cost?

It depends on your industry; some keywords can be dirt cheap while others are grossly expensive. But even within an industry, there can be big variations in keyword cost and average CPC based on the style of keywords you use and their traffic volume.

When you first launch your campaign, you probably want to have a smaller test budget so you can find out what’s going to convert.

With your initial testing, you might break even or lose money, but it’s all market research. You won’t know what truly resonates with your audience until you do some experimenting.

Request Your Free Opportunity Report

The most important thing is your campaigns are making a profitable return on investment.

If you’re looking for some expert assistant with your PPC campaigns and to avoid wasting your Google Ads budget, Different Gravy Digital are here to help.

To get in touch to receive a free, no obligation consultation:

Book a meeting: michaelgoldman.co.uk/

Telephone: 0161 706 0004

Email: contact@differentgravydigital.co.uk