How to set a budget for Google Ads for beginners

May 17, 2021

Setting a budget for Google Ads is a reasonable concern for any business owner because if it is done wrong, it can burn hundreds of thousands of dollars through your pocket. I get a lot of questions about what should be a good starting budget for Google Ads. Sadly, there is not a one-size-fits-all answer. However, there are a few ways you can navigate through this issue.

Average Daily Budget

First, you need to set some goals for your advertisements such as increasing traffic, driving leads, etc. Depending on what you are comfortable with and keeping your goals in perspective, you can set an average daily budget. Google ads have some tools, such as, performance planner, that can help to optimize your budget. 

Allocate a Test Budget for Google Ads

You can go on with a budget that you are comfortable with and test the fields. Rather than expecting a lot of profit, think of it as market research. Once you get an insight into what is working for you and what is not, you will be able to make better decisions and safely increase your google ads budget. Roughly calculate your test-run budget by considering the number of keywords you are using and how many clicks you are expecting out of each keyword.

Increase your Budget

Once you see the results coming in, get rid of all the keywords that are not working for you and keep the winners. Once your campaign becomes profitable, you can surely increase your budget as you will start to see the returns.

When I start a google ads program for my clients, I like to start with 2 thousand dollars a month. That’s 70 dollars a day if I’m running the ads 7 days a week. 

Focus on ROI

While you have your investment going in, you need to really focus on the returns on your investment (ROI). Instead of just managing your budget, you need to concentrate on maximizing your return within your budget. 

Remember that Google Ads is a pay-per-click program. So it’s essentially a numbers game and it is unlikely to make a lot of profit from the very beginning. So, if your budget is 20-30 dollars a day, you have to consider how many quality clicks you will be getting. You don’t need to break your bank, but you need to set a decent budget to let your ads have a fighting chance. 

Need help with google ads?

These are only some of the factors you should consider while allocating your Google Ads Budget. But surely, these are not all. There are a lot more things that you need to think about in order to maximize your profit. 

I have been working in the digital marketing industry since 2005. With over 15 years of experience, I can help you out, especially with pest control internet marketing. Feel free to reach out to me anytime via email, Facebook, Instagram, Twitter, or LinkedIn

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