7 Steps to Discover How Much to Spend in Google Ads Every Month
As a small business owner, you may have heard about the benefits of advertising on Google Ads to drive traffic to your website, increase sales, or generate leads. However, deciding on a Google Ads monthly budget can be a challenging task, especially if you have limited resources.
Let’s cover some steps to take that will help you determine your Google Ads monthly budget.
Step 1: Define your Business Goals
The first step to determining your Google Ads monthly budget is to define your business goals. What do you hope to achieve with your Google Ads campaign? Do you want to increase website traffic, generate leads, or boost sales? Your goals will influence the amount you are willing to spend.
Step 2: Identify Your Target Audience
Identifying your target audience is crucial for any successful Google Ads campaign. Who are you trying to reach with your ads? You can use Google Ads audience targeting options to define your ideal customer based on demographics, interests, and behavior. The size of your target audience will also impact your budget.
Step 3: Research Your Industry
Researching your industry is essential to understanding the competition and the keywords that you should be targeting. You can conduct research to find out how much your competitors are spending on Google Ads and what keywords they are targeting. This information will help you determine the level of investment required to compete.
Step 4: Determine Your Average Cost-Per-Click (CPC)
The cost-per-click (CPC) is the amount you pay for each click on your ad. To determine your average CPC, you can use Google Ads Keyword Planner to estimate the average CPC for the keywords you plan to target. This will help you determine how much you need to budget per click.
Step 5: Estimate Your Conversion Rate
The bottom line is that your budget really doesn’t matter so long as you earn more from the advertising than you spent. That’s where understanding your ad and landing page conversion rate comes in handy. Typically, you should be generating a lead or making a sale with at least 3% of your visits from ads. That means, 3 in 100 people take a profitable action for your business. Of course, 3% is the bare minimum you should expect – and you might already have some conversion rate information on your website already.
Consider how many clicks you will need in order to make a sale/conversion, and how much all those clicks would cost. You will want to set your Google Ads budget high enough to make the advertising worthwhile.
Step 6: Set Your Budget
Once you have determined your goals, target audience, competition, and CPC, you can set your budget. You can start with a smaller budget and adjust it over time based on the performance of your ads.
Step 7: Monitor Your Ads
Monitoring your ads is crucial to ensure that you are getting a good return on your investment. Adjust your budget as necessary based on the results you are actually seeing. Be sure to have conversion tracking in place.
If you need help optimizing everything and creating effective campaigns, you should hire a qualified Google Ads expert.
Maximize Your Google Ads ROI with the Right Budget
Setting a budget for your Google Ads campaign is not a one-time decision. It is an ongoing process that requires continuous monitoring and adjustment to ensure that you are getting the best results. By following these steps, you can determine a reasonable Google Ads monthly budget that fits your small business needs. Then rinse and repeat, until you feel you’ve hit a sweet spot of ROI and expenditure.
Whether you’re trying to drive more traffic to your website, increase sales, or generate leads, Google Ads can be an effective marketing tool for small businesses in North America. With careful planning, research, and monitoring, you can create a successful Google Ads campaign that achieves your business goals within your budget.
If you’re feeling overwhelmed with the process of determining your Google Ads budget or managing your ad campaign, don’t worry – devEdge Internet Marketing is here to help. As a Certified Google Ads Partner, we have the expertise and experience to help you maximize the effectiveness of your ad spend and achieve your business goals. Let’s Talk! And see how we can help you take your ad campaign to the next level.
