One of the benefits of Google Ads is that you are in complete control of your budget with nobody to tell you otherwise. However this can also be a problem, especially if you are launching your first campaign and not sure how much to invest.
In this post, we will talk through how to determine the best budget and also how to revise your budget inline with your campaign goals and of course once the data starts rolling in.
Setting an initial budget – what is the best strategy?
So although we can’t give an exact monetary value here, what we would suggest is that you start small. Google allows you to have a budget of just £1, however we feel that is just a little too conservative and won’t give you any real insight into how to proceed with your campaign. Consider the recommended CPC’s for your keywords and how much you would need to spend to achieve enough clicks to give you some useful data.
After a few weeks, you can start to analyse your traffic data and see what is and isn’t working before increasing your daily budget in line with your campaign goals.
Remember without your daily budget, your ads can’t show. Choose a daily amount that you are comfortable spending and when your budget limit is reached, your ads will stop showing that day.
Some tips to determine your budget.
Try calculating your daily send based on your monthly marketing budget. Just divide the amount you have by 30.4 and that is your new Google Ads daily budget target.
“Note: Due to changes in traffic, Google Ads allows up to 20% more clicks in a day than the budget specifies. However, in any given month, Google Ads never charges more than the average daily budget amount multiplied by 30.4.” – Google Ads
Basing your budget on your CPC – let’s say your average CPC is £0.20 and you want to achieve 100 clicks per day. Your daily budget would be £0.20 x 100 = £20
For established campaigns, Google will actually give you a recommended daily budget for campaigns with potential to achieve more traffic.
Budgeting for your goals.
There are three key areas to consider when creating new campaign goals; Building Awareness, Influencing Consideration and of course Driving Action.
Each one of these phases will require a different budget strategy.
- Building Awareness – Due to the scale of reach you are trying to achieve and the longer path to conversion process, you will often need to invest a larger budget to this stage.
- Influencing Consideration – Although any size budget can be considered at this stage, it is recommended to go with a medium to large budget to push this mid funnel audience into action.
- Driving Action – Here’s where the money is, at the bottom of the funnel where you will usually see a small group of users that fall into your ‘target audience’. Choose the budget you want to spend to meet all of your action goals, it can be small, medium or large at this point.
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