What is a Good Budget for Google Ads?

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One of the first questions we will ask you is – what is your budget for Google Ads?

One of the reasons for this question is so that we can understand how much support you need. Managing a £10/day budget and managing a £10k/day budget require very different levels of support.

Not sure what Google Ads budget you need?

If you are just starting out with Google Ads you might be unsure how to set a starting budget. Follow the steps below to calculate yours.

1. Start with the goal

Do you want to get sales or leads? Check the analytics data on your website. How many visitors do you receive and how many leads do you get currently? Turn that into a percentage and that is your website conversion rate.

2. Calculate the leads required

If you are a service-based business you will be looking to get leads. Not every lead becomes a sale. You then need to work out how many leads you need to make a sale.

3. Calculate the clicks needed

Now we know our conversion rate and goal, we need to work out how many clicks we need to traffic to the website, ready for it to convert. So work out the click volume required.

4. Cost Per Click

Next, you need to work out the Cost Per Click. This will depend on the search terms for your industry.

5. The final budget calculation

Multiply the Cost Per Click by the number of clicks needed and that will be your budget.

Is it really that simple?

Well, no. But it provides a good starting point. There are many differences between a theoretical budget and one in play.

Keyword Research

Good thorough keyword research and testing will often uncover some long-tail keywords that have less competition, are more targeted at your audience, and have a lower Cost Per Click.

Competitive Factors

Google Ads is an auction platform so the more competition there is for a keyword the higher the cost will be.

Landing Page Effectiveness

Campaigns should be designed for the user. If they click on an ad will the landing page give them the information they are looking for? Is it simple for them to take action or make a sale? Streamlining this process will make a big difference to the results.

ROI Tracking

Some keywords and strategies are more effective than others. Use the data available to improve your campaigns to get better efficiency on your spend.