How Much Should I Spend On A Google Ads Campaign?

I often get asked, how much should I spend on Google ads campaign.

What sort of budget do I really need in order to advertise on Google ads and to start seeing a return on investment? Either in terms of sales or generating leads.

So in this blog, I want to show you exactly that the how much budget you really need or how you need to spend on Google ads, in order to create a very effective Google Ads account.

To find out more check out my video below or keep reading for the full blog.

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I’m going to show you two methods of how to work out and how much you should be spending on Google ads.

The first method is, if you’ve got absolutely no data, you haven’t got a Google Ads account. You come to any Google Ads at all.

The second method is if you’ve got some data, for every x amount of clicks, you get onto your website. Regardless where they come from, they convert into a lead. So that method is a bit different to the method that you use if you’ve got absolutely no data.

Today I’ll show you exactly how to do both methods.

How much should I spend on Google ads?
What do you get charged for Google charges for keywords. So in other words, we could have a set of keywords. And every time somebody clicks on those keywords, Google charges you.

We get a Google list of keywords, for example, therapists, online therapists, and CBT therapists, right? And then we work out what is gonna be the average cost per click for those keywords. Google again, charges $2 per click for online therapists to do 50 per click for CBT therapists. One $1.25 per click.

I will tell you how we get to these figures very shortly. This means that if somebody clicks on our ad types, our keyword clicks on our ad, Google will charges this much. Okay?

Costs can vary massively in Google Apps, depending on the industry you’re in and the location that you’re in. For example, if you’re a roofer, the cost could vary from one dollars 20 to $5. A website developer these days, that’s your main keyword, could vary from $6 to $20 per click.

What happens that we give Google a budget, right? Let’s see if it’s $300 per month, right? That roughly equates to $10 per day. Now, if in the example of the therapists investment word that we want on Google, it means that $10 per day divided by $2 per click, works out to five, five clicks.

Using a budget of about $300 per month, you can get about five clicks per day for people who are looking for the word therapists will type into a therapist into Google. There are two ways on how we can work out on how to spend on Google ads.

First one is you got no data at all right? So you’re completely blank, and you want to work out. How do I get started? What is it going to cost me? How much do I need to spend?

What you do is you first build up a bucket of keywords. Keywords are the words that you will use for your business. What are people gonna be typing into Google to find your products or services. Okay. For that, you can use a free tool called the Google Keyword Planner

It is telling you that the word therapists have just reworked the first one. A therapist is going to cost between $1.46, one pound 46 and six pound 27 per click. This means that my average cost per click for all the keywords that I’ve got is minimum of 95 pounds.

So then you decide how many clicks do you actually want one? Okay. Let’s say for example, if you want 200 clicks, try to multiply 295 pounds by 200, which gives you 190 pounds. – this is your budget.

If you want to advertise on Google, however, I recommend a minimum budget of 300 pounds at least obviously. The more you pay, the more clicks you’re going to get, the more keywords you’re going to be abuse. I say 300 Because it’s good to get a lot of data, a lot of clicks to website, and the more clicks you get. The quicker you can start getting some conversion data to see what’s working and what’s not working.

What you do is over a period of time you start optimizing your account. Start reviewing it on a month to month basis to see what’s working and what’s not working. Either throw out or you improve, okay? And then, as a result of that, you can work out your monthly review your monthly budgets accordingly

If you’ve already got data, what you can do in method two is you could ask yourself, how many clicks does it take to get one lead?

Let’s say for example, if it takes 30 clicks to get one lead to website. Then what you do is, let’s assume that the average cost per click is one pound 25. Okay, so what we do is we say 30, multiply that one pound 25 is 37 pounds, 50.

It means for every 37 pounds 50 is when you’re gonna get one lead. If that’s the case, then your cost per lead is 37 pound 50.

When you ask yourself, how many leads do I want? I know each lead is going to cost me 37 pound 50. But how many leads do I want? Simply do the maths of cost to get your monthly budget.

Assuming that your cost per lead is 37 pound 50 and you want to generate the leads. But remember, when you’re talking about cost per lead, it’s not just acquiring that customer, you got to think about the customer lifetime value.

Don’t just think that how are you going to make money from a customer on day one, but think about how many times that customer likes to do repeat orders with you.


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