CEO and Founder of Zebra Advertisement.
You’re ready to start advertising your product or service. You know your target audience, and you have your ads created. Your next step is choosing the right budget for your campaign. Choosing the right budget can be either a difficult task or an easy one based on your industry. While clients and industries vary, my firm believes the best starting point is choosing the type of budget for your campaign on Google Ads before setting the budget itself. But let’s begin with choosing the right type of budget for your campaign on Google Ads.
Google Ads Daily Budgets
Google Ads lets you choose a daily budget or a campaign budget. When using the daily budget setting, it’s typical to have an idea of the budget for the month to spend on that campaign. Say that you have a monthly budget of $500 for this campaign. You can divide the budget by 30.4 days (because some months have 31 days), giving you a total daily budget of $16.44 for your campaign. This is an easy way to estimate your daily budget.
One thing to keep in mind with a daily budget is Google Ads doesn’t put a firm limit on the allotted daily budget and can go over by up to 20% of the budget in order to compensate for the fluctuations of daily search traffic. In other words, day three could go over the daily budget because your campaign picked up on more search volume than day four. No need to worry about this fluctuation in daily spend because Google Ads will prevent your campaign from going over your monthly budget. If it does go over your monthly budget, Google Ads will credit you. You can rest easy because your budget will be kept.
Google Ads Total Campaign Budgets
Another type of budget is the total campaign budget spend. If you already know how much you want to spend on a specific campaign with a time-sensitive budget, you can use this option. Say that you have a webinar coming up, and you want to spend $1,700 to promote it for three weeks only. You can select the start date, end date and total budget we want to spend. Google Ads will take care of delivering the ad to your intended audience.
If you want an easier way to know which budget is right for you, use the keyword planner tool on Google Ads. The keyword planner is an excellent tool because it gives you an estimate of your monthly budget, daily budget, average cost per click and how many clicks you will get with the keywords you plan on running. To access the keyword planner tool, all you need is to log into Google Ads and click on “tools” and “settings” in the upper right-hand corner. You will see a section called “planning,” which is where the keyword planner tool is located. For first-time users, it’s helpful to have an idea of the keywords you want to advertise. Once you open the keyword tool, you can add those keywords and choose the advertising location. Click on “Get Results” to see a whole list of keywords with their search volume, competition, top of page bid and more. You can choose which ones you want by adding them to your plan. We find that it is easier to add them as ad groups. Find this option in the left-hand corner under the name “grouped ideas.” From there, the keywords will be grouped into themes, and you can add all of those keywords to your plan automatically or choose the ones you’d like to add from those keyword groups.
Launching Your Campaign With A Budget
After you choose which campaign budget type you want to use, it’s time to decide on your budget. My advice is to start small, between $10 and $50 a day. Once you launch your campaign with your set budget, check back on it a day or two after to see if it is spending all of its allotted daily budgets. Keep in mind that when you launch a campaign, it goes into a learning stage that lasts up to two weeks. While you can make changes to your budget during this time, I’d recommend waiting because the campaign is gathering data that will help it perform better in the future. The data that you will see is the number of clicks, how many people see your ads, the cost per click, conversions and cost per acquisition.
Google Ads is an excellent platform to start with your online advertising. It can target your specific audience and exclude people you don’t want to show ads to. You can control how much your ads are shown, which times and days they are shown, and the income level of your audience. Target them by location and radius of a location. It’s perfect for brand awareness and remarketing to your audience. You can control how much you spend and on what keywords and ads. Measuring your campaign success has never been easier than on Google Ads because you can see everything in your campaign: how many clicks, where a purchase came from and where people are that are searching for your business. You can discover a lot about your audience by launching a Google Ads campaign.
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Author: Rocco Baldassarre, Forbes Councils Member