How much do I need to spend on Google Ads?

By: Jyll Saskin Gales, Google Ads Coach

Wondering how much you should be spending on Google Ads? It's a common question, and the answer isn't always straightforward. Let's discuss what you need to know about budgeting your Google Ads.

Why Your Google Ads Budget Matters

Your Google Ads budget is the fuel that powers your campaigns. Too little, and you might not reach enough potential customers. Too much, and you could be wasting money on clicks that don't convert. Finding the right balance is crucial for maximizing your return on investment (ROI). 

In this post, I'll discuss the factors that influence your ideal Google Ads budget and provide practical tips for determining a budget that works for your business. We'll cover everything from keyword research to competitor analysis, so you can make informed decisions about your Google Ads budget.

Google Ads Keyword Planner: Your Starting Point

Keyword Planner is a free tool in Google Ads that can help you estimate your potential ad spend. It provides insights into average cost-per-click (CPC) for your chosen keywords, allowing you to forecast a budget based on your desired number of clicks.

How many clicks do I need to budget for?

Aim for a minimum of 10 clicks per day to gather enough data for optimization. If the average CPC for your keywords is $5, your minimum daily budget for that one campaign would be $50. However, remember that this is just a starting point. Your "appropriate" budget might be higher, depending on your goals and resources.

Factors to Consider when Setting a Budget

• Your Goals: What are you hoping to achieve with Google Ads? More website traffic, leads, or sales? Your goals will influence how much you need to spend.
• Your Industry: Competition and keyword costs vary across industries. Research your industry benchmarks to get an idea of what clicks will cost you.
• Your Target Audience: How large is your target audience? Understanding your audience size will help you determine a realistic budget.
• Your Profit Margins: How much profit do you make on each sale? This will help you calculate how much you can afford to spend on acquiring a customer.

Remember, Google Ads isn't the only solution for business growth. If your budget doesn't allow for a meaningful Google Ads campaign, consider exploring other marketing channels like social media, content marketing, or email marketing.

Making the Most of Your Budget

Once you've determined your budget, focus on optimizing your campaigns for maximum ROI. Use targeted keywords, compelling ad copy, and relevant landing pages to attract and convert your ideal customers. Regularly monitor your campaign performance and make adjustments as needed.