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Online Advertising

What Is A Good Google Ads Starter Budget? [Video]

Speaker 1: (00:01) This is the PPC tutor podcast. Join us as we provide valuable tools, tips, and resources, helping you to kickstart your PPC advertising. Speaker 2: (00:16) Hi, thanks for joining me. This is Mike. And in this episode, I’m going to be talking about a topic that I find very interesting regarding Google ads and is to do with budgets and something that a lot of people struggle with, when they’re starting with Google ads, campaigns, or even having advertised for some time, a lot of people struggle with budget. How much should I spend? Should I up my budget? Can I increase it at all? These are questions people ask about budgets and Google ads. But today I want to look at a starter budget in Google ads. What’s a good starter budget when you are looking to launch your campaign? So, you’ve set up your search campaign, you want to advertise your products, your services, whatever you want to advertise, you’ll need to set a budget, which is a maximum amount you want to spend on a monthly or even a daily basis. Speaker 2: (01:17) So I’m going to be talking about the maximum amount you should spend daily versus monthly. That’s key when you’re setting budgets, how to set, these individual and shared budgets and so on. And, and it depends obviously on industries and whatever you’re trying to achieve. So how much should you set when you are just starting. A lot of businesses start with small budgets and that includes small and large businesses. I’ve worked with many large companies and even they start with small budgets. So, they want to test, they want to see what’s working, what’s not working and then maybe start increasing it as they start to see that performance happen. So, what I tend to find is a lot of businesses start with something like 300 pounds a month. it’s a small budget but it can bring you something, it can bring you some clicks, it can bring you some impressions. Speaker 2: (02:26) And then you’re able to see what searches and, and audiences and so forth that you’re getting. So, a lot of businesses start with about 300 pounds or$500. And that tends to be fine, but obviously it depends on the type of searches and the keywords that you are targeting. Some industries are competitive like 10 pounds a click. So, for example, if you pay like 10 pounds a click and you’ve got your 300 pound budget, you, you’re not going to get a lot of traffic. You are just going to get like 30 clicks and it’s not really going to go far. And you tend to find that with finance industries, marketing my own industry, six pounds, eight pounds, 10 pounds per click is common. And that’s what you’re going to see. Speaker 2: (03:22) So it obviously depends on the average cost per click and what you set so many businesses in those industries may, may start with like 500 pounds or even up to a thousand pounds and that’s fine and then you test it and then you see what you do. So, keyword research is a key part of that. When you do keyword research, you can see what keywords you want to target. It helps you to sort of map out your campaign, which ad groups you should have and what keywords and ads you should have in those ad groups. And when you do that keyword research there’s a free tool in Google ads, the keyword planner tool. If you go into Google ads and go to tools and settings, you’ll see that and just collect those keywords, group them together, and then just do some forecasting and see what that’s telling you in terms of volumes and so forth. Speaker 2: (04:22) And it also shows you what likely returns you will get based on different conversion rates. So maybe a 5% conversion rate and you get 100 clicks that will mean five sales or leads. So you got to think of all those things. When you want to set your budget, what return you’re going to get. So there is no fixed amount to pay. It depends on the industry. It depends on the type of keyword that you want to target and so on and so forth. And then there’s the daily and the monthly factor. In Google ads, we normally talk of monthly budget, but you would set it on a daily amount in your specific campaign. So, if you’ve got one campaign, you can obviously use shared budgets or have an individual budget. Now the shared budget allows you to have, maybe when you’ve got multiple campaigns, you can then have one account budget, for example, and then just group all your campaigns in there. Speaker 2: (05:31) And it gives you more control on how much you’re going to spend. The individual budget is obviously just for one campaign or something like that. If you’ve got a lot of campaigns, it’s harder to manage. Say you’ve got 15 campaigns and each of them got individual budgets. It’s harder to manage that daily spend and so forth. And you’re likely to spend much more than you intended. So, there’s the daily and the monthly amount. And as I mentioned in Google ads, we normally talk of monthly budgets, but in the campaign, you would set it on a daily limit. So,…