How Much Should I Spend on Google Ads?

The terms Google Ads, PPC, and ROI, may have your head spinning as a new small business owner and asking yourself, “how much should I spend on Google ads?”  Most businesses make $2 for every $1 they spend for Google Ads. 

Aside from budgets, Google hasn’t made it easy for anyone to understand its platform, which is part of the problem. 

While each business is different, we can help clear some of your confusion. Keep reading for a few helpful tips that will get you on your way. 

What are Google Ads?

Most of us use Google’s search engine to locate information about many topics, but it also allows you to make and run ads that help your business. 

There are a few benefits to Google Ads that you should take note of:

  • You decide when to start, pause or stop an ad campaign, what amount to spend, what geographic area, and your target audience
  • You have complete control over what your possible customers see
  • You can test various aspects of your campaign to see what works best
  • Your ads will be more targeted since the keywords you use are what your audience is searching
  • You already know the people seeing your ad are interested, making your ad intent-driven
  • You only pay when someone clicks on your ad, this keeps costs lower and budget-friendly
  • Compared to other types of ads, the return on investment for Google Ads is high 

Google stands behind small businesses trying to help them succeed. Even during the COVID-19 pandemic, there are incentives in addition to the tips in this article.

How Much to Spend on Google Adwords?

Your spending on Google Ads doesn’t have to be high. It can start with as little as $5 per day. Then as you grow and learn, you can increase your budget gradually over time. The keyword planner from Google that will help you choose your targetted keywords is free. 

The key to success in Google Ads is picking the right keywords. Just enter the search terms related to your business or your offer and suggestions of relevant keywords. Google even tells you how competitive they are and the average bid for each keyword. 

Now that you have selected your keywords, the next step is the keyword auction where you place a bid on them.

How Much to Budget for Googe Ads

Developing a budget means looking at statistics related to your business or offer; this will help you to understand what a realistic budget includes. While starting small and increasing over time may make sense, in most cases, that $5 per day budget won’t achieve much. 

Generally, you want to aim to reach six clicks per day minimum. How much you need to budget will vary industry to industry. For example, in the case of selling car insurance, you might need an overall budget of $150 a day to achieve six clicks. Once you have the data you need, it will be straightforward to calculate an estimated budget. 

What’s Next

We hope this article has helped you answer the question, “how much should I spend on Google ads.” Come back here for more helpful tips and compelling information soon.