How to Determine Your Starting Google Ads Budget

We Are a Google Partner Specializing in Search Marketing.
We Are a Google Partner Specializing in Search Marketing.

When you start advertising on Google Ads, how do you determine your starting budget?

There is no mystery to deciding your budget for Google Ads. I use the Keyword Planner to determine the best budget for starting out. Here are my tips.

  1. Create a list of 10 two to three word phrases that you feel will help drive qualified traffic.
  2. Go to your Google Ads account or ask your Google Ads consultant to run the numbers for you, but putting each keyword in the Google Keyword Planner to check for traffic, competition, and typical bids.
  3. Plan on these potential bids being about 20% lower than the real auction for clicks when your account is set up.
  4. Take the average of these ten keyword’s click costs and then decide how many clicks you would like to have a day before your ads stop showing.
  5. Look at the number generated in step 4 and determine if you can realistically live with this number. Never get over your head in regards to a budget that is way beyond your means. It is not typical to get leads in Google Ads the day ads serve. For some account it can take as long as three weeks for optimization to start to see the first lead conversion.
  6. Remember a lead conversion or beneficial action you are recording as a conversion is not always a sale. Sometimes it is just the first step in the sales process.
  7. Understand that it takes time for a Google Ads account to become profitable. Google Ads is a dynamic auction with bids changing for each query and many factors determining if your ads show or not.
  8. Work with a professional Google Ads account manager or consultant like McCord Web Services to get the most out of Google Ads.

I invite you to visit our website to learn more about Google Ads and our Google Ads consulting and account management services.