Google commands over 80% of the global search engine market share, making Google Ads a crucial platform for reaching a vast audience. Investing in Google Ads for your brand and offerings can significantly boost your prospects. The question arises: What is the optimal monthly budget for Google Ads?
This article endeavors to address this query and delve into various aspects of Google Ads spending, including:
– Establishing a suitable monthly Google Ads budget
– Three key factors influencing your Google Ads budget
– Four tips for setting your Google Ads budget
– Measuring the success of your Google Ads campaign
According to WebFX’s Paid Search Results Lead, Rebekah Leach, the recommended monthly Google Ads budget ranges from $500 to $40,000. “Ads have gotten a bit more expensive,” notes Rebekah, explaining the expanded budget range.
Every company’s Google Ads monthly budget is unique and influenced by external factors. The three primary factors affecting Google Ads spending are:
1. Industry
2. Goals
3. Market trends
Let’s examine each factor:
Your industry significantly impacts your Google Ads cost per click (CPC) and budget. Some industries feature competitive, high-volume keywords with higher CPCs, necessitating a higher budget allocation. For instance, the average CPC for Google Ads among surveyed businesses ranges from $0.11 to $0.50. However, certain industries have higher CPCs, such as legal at $6.75 and consumer services at $6.40.
Consider the keyword “personal injury attorney in new jersey,” which garners 6,600 monthly searches and has a CPC of $12.33 as of this writing. In contrast, a keyword related to fitness facilities has only a 110 monthly search volume and a CPC of $0.84.
Your marketing goals also affect your Google Ads budget. If you aim to increase brand awareness, you should bid on top-of-the-funnel (TOFU) keywords with higher search volume. Conversely, if your goal is to generate leads, you must bid on specific keywords that prospects use when interested in your offerings.
Monitoring your campaigns and keywords’ CPC is crucial, as seasonal changes and market shifts may impact your budget. For example, if you own a travel agency, you may notice lower search volume for certain keywords during certain months, while peak months see a surge in search volume.
To set an effective Google Ads budget, consider the following best practices:
– Review past ad spend data and identify trends in your ad spending and results.
– Measure and evaluate your return on ad spend (ROAS) over time, using tools like Performance Planner.
– Our free ROAS Calculator provides valuable insights into your ad campaigns’ performance.
– Analyze industry benchmarks for Google Ads spending and CPC to estimate returns from your budget.
– Use Google’s Keyword Planner to estimate monthly traffic and cost for targeted keywords.
– Compute your daily budget by dividing your monthly budget by 30.4 (accounting for months with 30 and 31 days) and then dividing your daily budget by the average CPC of your target keywords.
– Consider using Google Ads’ automated bidding tools to maximize your investment.
– Automate Google Ads to allocate higher budgets during peak demand periods.
To measure the success of your Google Ads campaigns, consider the following metrics:
– Impressions: The number of times your ad appeared for your target audience to see.
– Cost per click (CPC): The cost incurred each time a user clicks on your ad.
– Conversion rate: The percentage of people who click on your ad and perform the desired action.
– Return on ad spend (ROAS): The revenue generated for every dollar spent on advertising.
A well-defined Google Ads budget is crucial for reaching your target audience and encouraging the desired action. If you’re seeking the answer to “What’s a good Google Ads budget?” consider partnering with WebFX, a full-service digital marketing agency with over 28 years of experience managing Google Ads campaigns to boost our clients’ revenue.
Our team will take the time to understand your business, goals, and industry to develop an effective paid advertising strategy for you. Contact us online or call us at 888-601-5359 to speak with a strategist about our Google Ads management services!
