Budgeting can always be hectic. Whether it is calculating a budget to maintain your monthly expenses or whether you are calculating the Google Ads budget. Now, there is no way to avoid making a budget without some issues. This is especially true for Google Ads, formerly known as Google Adwords in digital marketing.
Every single click of Google Ads will either represent your business growth or you losing some money. Unfortunately, there is no all-inclusive too for creating PPC strategies and budgets. You will not find any free app. You have to figure it out manually.
Yes, we know that creating a budget can be difficult, especially when you have so many things to consider. You will never know how much you are paying exactly for a single click, even if you set up a maximum bid limit. There will be fluctuations that are difficult to take into account for multiple platforms.
Google Ads are the focal point for the marketing campaigns of a lot of brands. The costs are not always stable. Keeping all these in mind, we are going to show you the steps to calculate the Google Ads budget. These steps will make things easy for you.
Consider the funds that you have in hand
Before thinking about anything else, it is important to consider how much money you have in hand. This will be the starting point of what you are going to spend.
If you have $5000 in hand and you spend $2000 on email marketing and $1000 on content, then you will have $2000 in hand.
Now you have to think about what role you want your Google Ads to play. A lot of brands use search ads as a bit more aggressive tactic instead of using it simply for brand awareness. It is more focused on lead generation, sales, and event registration.
Thus, you will see more return on the ad spend. This makes you want to invest more. Google Ads is a much more aggressive digital marketing option because it helps you in reaching the customers instead of waiting for them to come to you.
Since this is your starting point, if you want to invest more in Google Ads, you have to adjust from other segments.
Keyword research for CPC
Researching on the CPCs is extremely important in creating a Google Ads budget. There will be different keywords you choose. They will have different CPCs and it will affect your budget.
You will find keywords on which a lot of competitors are ready to bid a large amount. Those are either high-search volume keywords or high-intent keywords indicating that the user is seeking to purchase. Sometimes, the high-intend keywords and high-search volume keywords will overlap.
Use the keyword research tools to evaluate the search volume and CPC of every individual keyword. The best tool is Google Keyword Planner. Create a list of keywords that you want to target and take a not of the high and low CPCs. Segregate the keyword according to their importance and then decide on which ones you will spend more.
Keep an eye on your competitor
Before you start to bid and spend on keywords, it is better to have a quick look at your competitors. This will help you know whether you are missing something or not.
There are tools like SpyFu that you can use, especially if you have a direct competitor. In this tool, you have to enter your competitor’s web domain and then they will show what keywords are ranking for the organic and paid traffic. Also, it will show you how much they are spending.
Prioritizing keywords and then allocating them
This is where you divide the Google Ads budget in a way that will deliver the best result. Create groups of keywords for different campaigns and then write a copy for every ad group.
Now, for the keywords with lower cost, you will see more clicks than the keywords with similar costs at the same budget. On the other hand, the higher cost keywords could offer you more traffic and customers.
If you are a startup or a nascent organization, then it is better to put out more budget on the high-cost keywords because those will offer you, high-value customers. This is something that you will learn with time and trial & errors a few times.
Creating a demo/test budget
The final stage is to test your budget. This is the time when you have to think of it as the real deal. Schedule the campaigns to end within a set time period. For a lot of businesses, this can be more than two weeks or a month. Choose the standard delivery and see what happens.
With the progress of your test, track the performance of the campaigns and keywords. For instance, take a note of which keyword is offering you the most clicks, generating leads, views, sales, and conversions.
You don’t want a campaign that will waste your money without getting you anything in return. If you are getting a lot of clicks but no conversions, then there is something wrong in the funnel. You need to address it immediately.
Finally, we can say that creating a Google Ads budget might take some time, especially if you are doing it for the first time. At your initial trial, you might not lose some money, but you will get the grasp of how it works are eventually reap the benefits of it.
This is a very important part of the digital marketing strategy and this is why it is okay to take a few calculated risks with Google Ads budget. This will help in using the right keywords for your marketing campaigns and stop you from scaling up the ad spend too quickly. Take your time to do things in the right way so that as you move forward, things become easier.
