What is the Minimum You Should Spend on Google Ads?
DETAILS
When — October 2023
Topic — Google Ads Budget
Cracking the Code: How Much Should A Small Business Spend on Google Ads?
It's easy to confuse the costs of Google Ads with other advertising channels like billboards or radio spots. But with Google Ads you pay per click, not per impression. Essentially, you’re in a bidding war with your competitors for that top spot and click on Google, and the biggest budget wins.
Google Ads Spending For Local Businesses
Let's break it down further. A Google Ads budget isn't a one-size-fits-all affair. Each keyword comes with its own cost, and this is determined by things like it’s search volume, competitiveness, and the quality of your ads. Basically, if it’s a keyword lots of people want to target, expect the price to reflect that.
The real question. What's the Minimum You Should Spend on Ads?
While there's technically no minimum spend, let's get real. With the average cost per click on Google Ads being $4.22, a $2 or $5 daily budget won't cut it. You might only get 1 click per day!
The theory of needing to see results from a small budget to justify a bigger one just doesn't fly here.
So, how much should you spend?
I’m going to have to give you the classic ‘It Depends’. But as a generic starting point, we recommend spending no less than $15-30 per day. This range is tailored to factors like your business type, industry, objectives, and target locations.
If you’re a Google Ads newbie, start with a budget that lets you learn the ropes but stay competitive. Make sure to think of your budget as an investment, not an expense too. Tracking is your saviour here. Are your Google Ads driving conversions, or is your budget evaporating into nothing? Tools like conversion tracking, ecommerce tracking, or lead form tracking will help you understand the returns on your spend and give you the comfort that your investment is paying off.
So, is Google Ads a good investment for your business?
Honestly, it depends on where your business stands. If you’re struggling to get off the ground, Google Ads may help, but they won't work miracles alone. But if your business is thriving, and you're ready for more attention and traffic, then it’s time for Google Ads.
Your Google Ads spend is all about context. The right keywords and a well-thought-out strategy are your keys to success. Remember, it's not just about how much you spend, but how smartly you allocate those dollars through the right keyword selection and strategy. We’re always here to help if you need it!
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