Complete Guide to Google Adwords Budget for Small Business

Google Adwords is an excellent way to generate traffic, leads, and budget for your small business. But how do you set up your budget? It’s a simple enough question, but it’s surprisingly difficult to answer. There are so many factors to consider, from cost per conversion to the Lifetime Value of a customer. It doesn’t help that there are so many different things to budget for – search engine ads, YouTube ads, mobile ads, display ads, re-marketing ads, and more. This article aims to help.


Determining your initial Google Ads budget

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Google Adwords Budget for Small Business

With so many different types of advertising available, you’re never going to have enough money to do it all. The first step is to figure out how much you need to spend to reach the maximum level of sales. Next, you need to decide the amount of time you want to advertise for. If you’re thinking about running paid ads on Facebook, YouTube, or Twitter, you’re spending a lot of time and effort to get that traffic and conversion. Besides, if you don’t know exactly how much you want to spend to reach your maximum sales or the amount of time you want to spend advertising for a specific length of time, you may need to add some space between your maximum and minimum budgets.

1) How does Google Ads business fit into my current marketing strategy?

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Google Adwords Budget for Small Business

Before deciding how much you’ll spend on Google Ads for your business, it’s important to make sure it’s going to add value to your marketing strategy. Do you have a clear focus on building the web presence of your business or simply looking to drive traffic? Does the content you’re creating have a clear call to action for potential customers? A good way to figure out how much Google Ads are worth is to calculate the cost per click (CPC) for the traffic you have now. For example, let’s say you’re selling a product on the eBay website. On the other hand, you should also know that eBay only allows you to get 1% of a sale. So, if someone purchases your product, you would have to charge eBay 1% of the sale price of $100.

2) What (and where) are my competitors’ spending?

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Google Adwords Budget for Small Business

You can find out where your competitors are spending their money, so you can find out where to spend your budget too.

  • Step 1: Launch an Account. First, you need an account. Head to Google AdSense and select the Dashboard tab. Click “Start Your Free Account”, and enter your site’s URL in the “URL” field.
  • Step 2: Set up your account. Select a primary keyword for your site or category. Click “Configure your ads”, and click the “Create an account” button.

As the owner of the site, you’ll need to verify your address and email. From there, you can manage your account and set up budgets and targeted ads. Once you’ve done this, click “Start your account” to create a new page. If you’re on a new site, you’ll need to link your account with your registrar, which is usually your domain registrar.

3) How high are the CPCs for the keywords I’m bidding on?

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Google Adwords Budget for Small Business

You can have up to $35 CPM for each keyword. For every CPM you bid, you’ll pay Google $35. That is unless you include a performance tracker. With performance tracking, you’ll pay only $35 for each keyword if the conversion rate is above a certain threshold. For example, you’d only pay $35 for keywords that convert at a 7% rate. So, for every search ad, you bid on, you’ll only pay $35 for each conversion. So if you have 20 keywords, you’d need to bid $500.00 to get the full $35 back. And if you’re lucky enough to convert all 20 clicks, that’s $2,500.00 in CPM. In addition, the best place to use a performance tracker is in the performance metrics area. That is somewhere on the first page of the report.

4) Which KPIs (key performance indicators) matter most to me?

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Google Adwords Budget for Small Business

Every industry has its own key performance indicators (KPIs). Here, we’re looking for the most critical things that matter most to us.

  • Clicks – We want click-through rates (CTRs), minimum conversion rates (MRCs), average session duration, the average cost per click (CPC), and other metrics that help us understand whether people are actually converting to customers or not.
  • Cost per click (CPC) – For many advertisers, it’s their most important metric. We want to make sure that our clicks are worth our money.
  • Traffic – We want the total amount of traffic that we get. Whether it’s direct visitors to our website, or visitors to our landing page, or page visitors to our SERP (Search Engine Results Page), we want to make sure that the traffic is equal to, or greater than, the cost of running the ad.

If you’re like me, you’ve probably considered setting up Google Ads business at one point or another. After all, there’s a lot of information out there that will show you how to use them. This guide contains all of that information in one place. If you know nothing about Google Ads for business, there’s no better place to start than with this guide. It covers all of the basics in the form of a comprehensive guide. If you want more, read on. Once you get the hang of setting up a Google Ad Campaign and managing it through your Ad Manager, there are still plenty of other options you can explore.


Allocating spend across search campaigns

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Google Adwords Budget for Small Business

Search marketing is one of the most important parts of a digital marketing strategy. That’s not only because Google drives over 95% of all online searches – but also because search ads are extremely cost-effective. Search is inherently high converting because you’re targeting people who already want what you offer, not people who don’t. But Google won’t work for your business if your ads aren’t properly targeted. To do this, use Google AdWords’ 7 data-based targeting tools to find your target audience. First things first, you’ll need a strong strategy in place. Before you’re able to define your goal, you’ll need to consider your competition, and what strategies they’re using to achieve that goal.

1) Research-stage/top-of-funnel keywords

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Google Adwords Budget for Small Business

The first step is to set up a Google AdWords account, so you can access Google Analytics. If you already have an account, take a look at the customer account and ads accounts to determine the top-of-funnel keyword target in Google AdWords. Here are some examples: “birthday party”, “swimsuit”, “toddler”, “work”, “jobs, “openings”, “opportunities” “happy hour specials”. You will want to set the budget for each of these terms to try to increase conversion. Set a budget for website SEO keywords. Once you have a budget, you’ll want to start bidding on keywords, which you can do on the page. Head to ads manager. Here, you can set up bids for each day of the week.

2) Branded keywords

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Google Adwords Budget for Small Business

Why do you need to spend money on advertising? It’s the question you should always ask, and a good way to generate more leads, sales, and revenue for your business. Start by budgeting for a combination of keywords and ad copy. In particular, you should invest time and money in investing in your brand’s keywords. These are the keywords that your customers use to find you, so being among the top three companies on Google in your industry will boost your SEO and drive more traffic to your site. It’s also wise to consider that Google will show ads for popular and “relevant” keywords. If someone Googles the word “teabox”, they’re likely to see ads for tea. A good budget should cover keywords that are used both by customers and potential customers so that you reach a broad base of people.

3) Competitor keywords

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Google Adwords Budget for Small Business

Google AdWords categorizes keywords into four different categories: Keyword Hints, Keyword Tabulation, Campaign-based keywords, and PPC-based keywords.

Keyword tabulation and keyword optimization play a large part in determining a keyword’s position on the search engine results pages (SERPs) and the ranking of that keyword in Google’s AdWords ranking. Note: As discussed in other articles, Google also allows us to download the keyword scoring model. This model includes valuable information about the ranking of keywords that appear on the first few pages of a search query. Are you trying to rank for a different keyword that Google has created? That’s where your competitor keyword ideas come in.

4) High-intent keywords on Google Ads for business

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Google Adwords Budget for Small Business

One of the most common questions I get is about setting up an effective budget. A lot of people want to know, “What does $10,000 per month buy me?” But this question reveals more than just how much you can spend on ads. What you want to know is, “How can I drive the most amount of revenue per click?” Google Adwords allows you to customize a budget that is tailored to your target audience and ad performance. And you can tweak the budget manually, or create a specific budget on Google’s paid advertising calculator. You can even add premium Google AdWords features like AdWords Builder or Segment.

5) Top Performers

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Google Adwords Budget for Small Business

Look over the list of the most clicked Google Ads ads. What top-performing ads have in common? Each one has paid for your business, helped you meet goals, and generate traffic. They all helped you show up in Google’s search results for relevant queries. What about the “least successful” adverts? They probably aren’t achieving your goals. What’s important to look for in your top-performing ads is a focus on driving traffic and traffic alone. The ads that don’t show up as a top result in your SERPs are probably not performing as well as you’d hope. If you look at the two bottoms’ five ads, are they really a waste of your budget?


Budgeting For Everything Else Google Ads Has To Offer

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Google Adwords Budget for Small Business

Most business owners start with a basic Google AdWords campaign, spending whatever money they can afford. They spend it all. That’s usually the default but it’s not an ideal strategy. Rather, a good budget means that you can actually reap the rewards from Google’s advertising technology. According to the following infographic, to maximize the benefits from your money, you should budget at least $80,000 for business Google Ads. This way, you will: Earn more leads, Retain those leads, Increase brand awareness, Increase Sales, and Increase Profits.

Google has an answer to all of these questions: How to budget for everything Google Ads has to offer? The first step to the right Google Ads budget is to determine how much you actually need. And that’s not always the easiest task.

1) Display in Google Ads for business

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Google Adwords Budget for Small Business

The two biggest things to consider with display ads are whether your brand image is visible and whether the ad works. If you have a clean and polished website, Google ads for business will show you a great display ad that looks fantastic and has great clickthrough rates. For most businesses, though, the two biggest things to consider with display ads are whether your brand image is visible and whether the ad works. Let’s say you own a manufacturing company. Your product might be a sewing machine, and you have one ad showing someone cutting fabric, and another with a sewing machine at a show. The placement and visual identity of your ad are so important that you can’t just sit in a motel in Kansas City, selling sewing machines online.

2) Remarketing

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Google Adwords Budget for Small Business

Remarketing can be very useful if you want to sell to a specific group of people. You can target people who have visited your website, bought from you, or have applied for a certain product. Remarketing allows you to know who your website visitors are and send them direct marketing messages. A direct-mail piece from your business would be one good way to market to that audience, for example. The problem is that you need to re-engage these people after their first visit, and you have to have at least some idea about what they bought and where they are from. Remarketing is a tool that allows you to do this – it finds a group of people who have previously viewed your website.


Expanding to other platforms

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First off, you need to decide which platform you’re going to focus on. If you’re doing AdWords on your website, you can purchase AdWords on the Website Page. On the desktop, AdWords is in the menu bar on the left side of your computer. And on mobile, AdWords is in the toolbar on your phone or tablet. For this article, you’ll work with all two platforms.

  • Mobile for mobile ads, you’ll need to include AdSense – which sits above AdWords – in your budget. AdSense is essentially Google’s answer to the advertising industry. They take a small cut (between 10-15%) of every sale. You can include both desktop and mobile ads in your mobile campaign by buying both ads through the same account.
  • YouTube for YouTube Ads is one of the most versatile AdWords campaigns.


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