How to Determine Your Google Ads Budget

Updated on: 30-08-2021 by WEB-ROI

google ads graphic on laptop

Google Ads are crucial to any successful digital marketing campaign, but how do you determine your budget? It’s a problem faced by businesses who are both new and experienced with PPC marketing, as the process can feel overwhelming, confusing, and time-consuming. 

Budgets vary from organization to organization, based on financial restrictions and campaign goals. Be aware that spending varies depending on which industry you belong to, as keyword costs vary, among other things. However, on average businesses usually see a healthy return on Google Ads, making it a worthwhile endeavour to accelerate the success of your business. 

Buckle your seatbelts because we’re about to discuss how to manage your Google Ads budget so that you find yourself on the fast track to success. 

Determine a Baseline Budget 

To begin, you need a general budget estimate. Determine your baseline budget – an amount that you’re comfortable spending on Google Ads each month. This number can be adjusted for accuracy as you gather more data from your campaigns once they’re launched. Still, it’s important to begin with a general budget estimate that aligns with your company’s expectations. 

Are you looking for a helping hand running successful Google Ads? Contact our team at WEB ROI today to get started!  

Let’s Talk

business person calculating numbers on calculator and inputting into computer

Calculate Cost-Per-Click (CPC) for Your Desired Keywords 

Another important piece of preliminary data is your average cost-per-click. This is the average amount of money that Google will charge each time one of your ads is clicked on, and it can be estimated through the Google Keyword Planner. This average is a valuable tool to keep your budgeting on track, although be aware that it’s more of a loose guideline. Again, you can adjust this number as more data becomes available to you. 

The average CPC for any keyword is a simple calculation: total costs divided by total clicks. Since keywords vary in value and competition, it’s important to have this data on hand for your chosen keywords and determine your budget. If you decide to use keywords with high competition, for example, you may see a lower ROI for your ad spending than if you had used less competitive keywords. 

Some strategies to help you choose a CPC budget: 

  • Begin with keyword research, and gain an idea of how much competitors are bidding and how much it will cost you to compete with them 
  • Set a budget limit and use it as a guideline. If this means choosing to bid on fewer keywords or run fewer ads, that may be the correct choice for your business at this stage in the race
  • Determine your desired keywords and design your budget around their CPC. 

Beginning with a budget is a smart approach, as it allows you to set a cap for your CPC, and you can then choose your keywords within that range. It can be tempting to put your pedal to the metal right out the gate, but it’s important to go at a manageable pace so that you don’t run out of steam before you reach the finish line! 

Pinpoint Areas for Improvement 

Once you’ve determined an informed preliminary budget, it’s time to shift focus onto the areas of your advertising campaign or sales strategy that have the potential to make your Google Ads budget more efficient.  

Google Ads are just one piece of the puzzle – once you’ve intrigued prospective clients, you still need quality content and web design to maximize conversions. You can drive as much traffic to your site as possible, but if the website itself falls flat, you’re spinning your wheels for nothing! Consider improving your UX and UI, your landing pages, or your call-to-action to make your Google Ads spending more profitable. 

You can impact your ROI by targeting low-cost keywords to reduce your CPC if you find your cost-per-click overwhelming or unsustainable. If you’re in a low-traffic market, either increasing the price of your product or decreasing its cost can increase the profitability of your ad campaigns. 

Google Ads are a valuable tool because they’re flexible, meaning you can mold them to function in a way that benefits your business, regardless of your industry and budget. There are various choices you can make both within your Google Ads strategy and outside that will increase the effectiveness of your advertising and give you a leg up on the competition. 

WEB ROI specializes in digital marketing and online advertising, with expert knowledge spanning across industries. Contact our team today to discuss your advertising strategy, and together, we’ll embark on the path to success.  

Sign me up for tips, tricks, and updates.

ready to see results?

The prize is a high-traffic website that generates quality leads.

With a high-traffic website designed to convert quality leads into paying customers you can shift your focus to other areas of your business (or reclaim some much-needed personal time).

Stop driving in circles. Choose digital marketing services guaranteed to get you to the finish line. With an award-winning website design company like WEB ROI at your side, it won't take long to achieve your goals.

LET’S TALK
WEB ROI logo  title=
high traffic website in Canada