How Much Money Should You Invest in Your Google Ads Budget?
Budgeting can be a challenge. There are ways to mitigate the hassle, but unfortunately there are no ways to entirely avoid budgeting completely. With Google Ads being paramount to many businesses’ marketing strategies, it can be difficult to decide a budget or even decide what you can expect to be paying.
Creating a marketing budget (or any kind of budget) can be difficult, especially with so many moving pieces and potential costs that are not 100% certain. Businesses never truly know what they will pay for a single click.
Google Ads is built like an auction marketing place and they sell conversions. But how much should you spend on Google Ads? The place to start is determining your budget.
Take a look at the 5 key steps you should take before deciding your Google Ads budget.
Find Out What Your Competitors Are Spending
It’s always a good idea to check out the competition and see what keywords they’re targeting and how much money they are spending.
If you have a competitor that you want to outrank in paid search results, for example, then knowing how much they’re spending will give you valuable information to outbid them.
Tools are good to get an idea of where your competitors are spending their Google Ads budget, the keywords they’re using and how much traffic they’re generating.
Armed with this insightful information, you can form strategies to beat them to the best positions on search results and find keywords that none of your competitors are bidding on.
Do you know who your competitors are? Do you know what they’re up to? To find out, contact Different Gravy Digital for a free PPC competitor report:
Book a meeting: michaelgoldman.co.uk/
Telephone: 0161 706 0004
Email: contact@differentgravydigital.co.uk
2. Know Your Expected Cost-per-Clicks (CPC)
To get an informed idea of how much your budget should be, consider the cost of the keywords you’re bidding on.
But if you’re basing your CPC, and as a result your budget, off the wrong keywords then you will be likely thinking you only need a small budget. For your Google Ads budget to deliver a return on investment, it’s important that the keywords you plan to us in your campaign are optimised, relevant and targeted.
Without conducting keyword research both at the beginning of your campaign and regularly throughout, you will never receive the best possible return on investment for your efforts. You can learn more about picking the best keywords in our previous blog post: The Ultimate Guide to PPC Competitor Research
3. Decide Your Bids
Once you know the keywords that you want to target in your campaign, you can decide how much you are willing to pay for each click through to your landing page.
Google has a few standard guidelines for setting bids which you might find useful, and it’s recommended to stay close to their suggested bids.
But it’s also very importance that you think how much you can realistically expect to earn from each ad.
Not every person who clicks on your ad will convert. For example, if Google suggests a bid of £5 on a keyword for a product that only costs £10, you will have to convert 50% of the traffic to that page just to break even.
4. Run a Test
If you have never run campaigns on Google Ads before, it’s impossible to know what works for certain.
Your tests might be a fail – in which case you go back to the drawing board and analyse your keywords, landing page and ad copy. If your test is a success – then you can work to increase your keyword list and expand your budget.
But if you’ve never worked with PPC and you don’t utilise the help of a PPC agency (like us) then you will probably lose money on them.
Even if you do lose money, it’s part of your PPC journey which you will earn back once your campaign is optimised.
Will Google Ads Be a Good Investment?
If you have a good business with excellent products or services and you know what makes you stand out from your competitors, then Google Ads will be one of the most rewarding marketing methods you have ever used.
But you do need to take your competitors into account – it’s vital you know how you compare against your competitors. Your performance compared to theirs will translate into how well you can compete in Google Ads.
Do You Know What Your Competitors Are Up to?
Are you looking for professional help with your Google Ads budget? Look no further.
Different Gravy our experts in creating successful PPC campaigns for our clients, and we can use our experience to do the same for you. We will research and manage your campaigns and help you decide the budget you should allocate to Google Ads for the greatest return on investment.
If you’re looking to get started with Google Ads or you want to optimise an existing campaign, we would love to hear from you.
Get in touch for a free, no obligation consultation:
Book a meeting: michaelgoldman.co.uk/
Telephone: 0161 706 0004