“How much should I spend on Google?”
“What should my Google Ads budget be?”
These are two are of the most common questions we get asked, with answers that can vary wildy based on a number of factors like:
- What’s the goal? Leads and / or brand awareness?
- How many services?
- How many locations? Cities, provinces and countries
- What campaign types? Text, image and video campaigns etc..
There’s no one-size fits all answer, but below is an example to give you an idea of how one can get an estimated budget.
Working out an Estimated budget
We find it best to start with the end in mind.
How many 1) leads would you ideally like per month?
From there one has to 2) estimate what the cost per click is (one can use Google’s Keyword Planner for estimated volumes and cost per clicks).
And finally, one has to 3) estimate the website or landing page’s conversion rate of the traffic. This can range based on the industy, website’s design, value and cost of the product / service, content, etc.
NB: estimating the cost per click and converion rate won’t be necessary if you already have the data from running Google Ads, or for new accounts, you’ll get a rough idea within a few weeks
Consider the below example:
1) 50 leads a month
2) Estimating a cost per click of 20.00
3) Estimating a conversion rate of 10%
To get 50 leads at a conversion rate of 10%, we would need 500 clicks.
If the cost per click is 20.00, then the estimated budget would be 10 000.00.
In the above example, if one could increase the conversion rate from 10% to 20% (with a better landing page, more attractive offer, etc) then only half the budget would be needed to get 50 leads!
Or at the same budget get double the leads.
Our (Unlimited) budget philosophy
If you found an ATM that allowed you to put 10.00 in and then get 20.00 out, would you stop putting in tens?
Heck no! Only until you get 10.00 or less back right?
Google Ads can work the same as long as these two points remain true:
- You’re getting quality leads and make a profit
- You’re able to handle the leads, both in follow up times, and in being able to do the actual work for those that become sales
If one is making a profit and able to hand more leads why would one put a limit on the budget?
That’s definitely worth pondering 🤔
Calculate your daily and monthly Google Ads Spend
Fill in the form below to try out our Google Ads budget calculator.