How much does Google Ads cost? So what type of monthly budget Do I need in order to run a Google Ads campaign?
Now, this is a very common question that I get asked by my potential customers. So they just get an idea of how much money they need in order to manage their Google ads.
To find out more check out my video below or keep reading for the full blog.
Today, I want to talk you through a very simple process. How to work out for your individual clients and how much budget they may need to allocate.
Now there are so many different ways in which you can do this, I want to show you the process by using two different tools.
The first one using Google Keyword Planner and the second one, using Uber suggest.
If you don’t have a Google Ads account, you can use an independent tool such as Uber suggest` In order to work out some type of maths and figures to give your client an idea of what type of budget to allocate.
I’m going to use the example of a furniture website. So once you’re in your Google Ads account, you click on Tools. And within planning, you click on Keyword Planner.
Here, you will see two boxes. — Discover new keywords, get search volumes and forecasts. You can use this but I will show you this method today using discover new keywords.
Type in a few of the keywords that you might wish to use within your campaigns such as single beds or double beds. Tab key and click on get results. So here, what you will see are the keywords, and Google gives you a whole lot of data.
So it shows your keyword shows you search volume. How many times these keywords have researched, or type over the past 30 days. The average cost per click is competition nature, so one indicates quite high. And it also shows you the lowest amount you might like to bid on. Take these as a guide, they’re not always that accurate.
So I always add at least 30% to the top of page bid. If a keyword is relevant, I put a tick in the boxes. And then I come across the green versus blue bar here with your plan. New keyword with new ad group and match type.
So I normally set this to exact match, and then click on add keywords. And what this will do then is that when you go to plan overview here. You will get some basic data in terms of what you can achieve for a certain budget.
So if you were to spend six-pound, you’re likely to get 65 clicks and 5300 impressions at an average cost per click of 11 pence.
Now you can amend this figure is based on what you’ve already seen. And this is where the fun really starts.
So if I type in 48 pounds per click, which is a bit more realistic. It can Google’s telling us that okay, for a budget of 700 pounds, I’m likely to get 2200 clicks at an average Google Ads cost per click of 48 pounds.
But that will achieve an average position of 4.4. What I can also do is I can use this dot here and move this around, depending on what I think I might like to spend.
So if I just move this up, clearly, you can see the figures change accordingly. I’m saying hey, I’m willing to spend a bit more. I’m willing to spend like 12,000 pounds in this case, in which case I’m likely to get 15,000 clicks.
What I can also do is I can click on this link here called to add the conversion. So if I know what my average conversion rate is, I can type my conversion rate into here. So let’s say if I type in my average conversion rate is 1.5%. And I can also type in a conversion value. So I know that for each sale that’s made to me, what’s the average conversion value worth to me?
So if I type in, say, 150 pounds here, I click on Save. And what I can do here is okay, so my cost of starting to spend per 1000. So might say hey, don’t spend that much audience want to spend. Say 5000 so I can amend that from this graph here, or so on. And the figures will adjust for me so now I can say that by spending 4000
Wonderful I’d like to get 110 conversions based on my 1.5% conversion rate at an average cost per acquisition of 36 pounds. And my total conversion value being 17,000 pounds. — because I have already specified that my value per conversion is 150 pounds. This is really valuable data just to give you some high-level data, information as to what type of budget to allocate.
And for that budget, how many conversions you’re likely to get, and what your revenue is likely to be.
By allocating that amount of budget, what I also do is I use a different way as well. So looking at an average Google Ads cost per click, if I know that my average cost per click is a 54-pound use a spreadsheet. And over here, I type in my monthly spend, so it’s working in a different way.
So I’ve got the data from Google to see what my average cost per click is now you’ll have an idea how much Google Ads cost. Let’s say my average monthly budget was 1000 pounds. And if I know that my average cost per click is 50 pounds, for example. I know my average conversion rate is 1.5% and my value per conversion is 150 pounds. Google is then telling me, that in order to utilize your 1000 pounds at a spend 50 pence per click on likely to get 2000 clicks, 30 conversions. A conversion value of four and a half 1000 pounds.
That’s one way of working out what type of budget you might like to allocate. And for that budget, how many sales or convert you’re likely to get. As I said to you, I did I will cover another way as well. And that’s using Uber suggest. Again, if I google, Uber suggests, Uber.
Just click on this link here for Neil Patel Ford slash Uber suggest, set my country. So United Kingdom and type in my keyword again. For now, let’s type in one keyword, which is single beds, and I’ll click on Search.
And then he will suggest again, tell me what my average cost per click is likely to be. And then what my search volume is for those particular keywords. So I can see it’s 55 pounds. So I can just go inside my spreadsheet and type in average cost per click is 55 pounds. And I’m lucky to get 1818 clicks 27 conversions and a conversion value of 4091 pounds.
Another thing you can do is when setting your budget, you can either set it at the campaign level. If you’ve got different types of furniture, you might have beds, cupboards, chairs or dining tables. You can either set budgets for individual campaigns, or you can set them at a shared library level. This means that hey, I’m allocating this amount of budget like let’s say 1000 pounds. The one that 1000 pounds to be distributed to all my campaigns or specific campaigns.
And the great thing about Google Ads is you can stop and start your campaign at any point in time. So if you feel that, hey, I’ve got too many leads, for example, you can just stop your campaign at that point in time and then continue them at another date a week later or a few days later.
Now, remember, Google works on auctions type of system. So how much you pay per click depends on multiple factors such as your bid price, in other words, how much you’re willing to pay Google at any one point in time, and your quality score.
So using a combination of these factors, Google will determine what position you are ranked at within Google. And don’t forget, your quality score is a combination of various factors such as your ad relevancy, your landing page experience, and your click-through rate.
The final thing you need to take into account is if you’re outsourcing your Google ads. A part of your cost is the management fee, which your agency or your Freelancer consultant may charge you on a monthly basis to manage your overall Google ads.
How much you pay per click depends on multiple factors such as your bid price. In other words, how much you’re willing to pay Google at any one point in time, and your quality score.
So using a combination of these factors, Google will determine what position you are ranked at within Google. Don’t forget, your quality score is a combination of various factors such as your ad relevancy, your landing page experience, and your click-through rate. You might be interested in reading my other blog, which discusses how to improve your quality score.
Need help with your Google Ads? Or just want an independent review of your Google Ads/SEO? Contact us or call 07866 555 555