How much should you budget for a Google Ads campaign on Maximize Conversions?

By: Jyll Saskin Gales, Google Ads Coach

You've decided to use the "Maximize Conversions" bidding strategy for your new Google Ads campaign (excellent choice!). But now you're probably wondering, "What budget should I actually set?" Let's break it down and make sure you're allocating your ad spend effectively.

The Goal: At Least One Conversion Per Day

A good rule of thumb for new Google Ads campaigns is to aim for a budget that will likely get you at least one conversion per day. Why? Because this provides enough data for Google Ads to learn and optimize your campaigns effectively.

Calculating Your Google Ads Campaign Budget

To figure out your ideal budget, you need two key pieces of information:

• Expected Cost-Per-Click (CPC): This is the average amount you'll pay each time someone clicks on your ad.  You can get an estimate of your expected CPC using Google's Keyword Planner.
• Expected Conversion Rate: This is the percentage of people who click on your ad and then go on to complete a desired action (like making a purchase or filling out a form).  You can estimate this by looking at your conversion rates from other campaigns or by checking your website's conversion rate for different traffic sources in Google Analytics.

Putting CPC and CVR Together For Your Google Ads Budget

Let's say your expected CPC is $5, and your expected conversion rate is 2%. This means you'll need about 50 clicks to get one conversion (since every 100 clicks, you'd expect to get about 2 conversions).

To get 50 clicks per day at a $5 CPC, you'll need a daily campaign budget of $250 (50 clicks x $5 = $250).

Important Considerations

• Traffic Source: Remember that different traffic sources tend to have different conversion rates. For example, traffic from Google Ads might have a lower conversion rate than direct traffic to your website, but a higher conversion rate than traffic from organic social media.
• Flexibility: Don't be afraid to adjust your budget as needed. If you're not getting enough conversions, you may need to increase your budget. Or, your Google Ads may not be to blame, and you need to work on our website or your offer.

Setting the right budget for your "Maximize Conversions" campaign is crucial for its success. By aiming for at least one conversion per day, and using your expected CPC and conversion rate to calculate your budget, you'll be well on your way to achieving your Google Ads goals.