Google Ads can be an affordable way to scale your business. A recent study found that about 80% of new clients come from Google ads!

How Much Should You Invest In Google Advertising?


One of the most persuasive advertising channels for online and small businesses is Google Ads. When we talk with clients, they always want to know. How much do we need to spend on Google Ads to see optimal results? That's a challenging inquiry, and there is no one straight answer.

Why?

Because when you advertise on Google Ads, you need to consider each keyword group, and you're bidding for the most relevant clicks to stand out from the competition. It's essential to understand that Google Ads is an auction site and establishing a fair budget depends on the cost of the relevant phrases and words you require to bid on. For instance, when you bid on trendy and prevalent keywords, quotes are higher, increasing your advertising expenses.

When you begin a Google Ads campaign, it's a wise idea to run an initial test. This test allows you to gain knowledge of the most optimal ad messages within your target audience. It also helps you bid on those keywords that are converting leads into paying customers. Besides, you can evaluate your sales funnel. Once your marketing campaign is profitable, it's time to set up the budget. The key to determining your ad expenses is to focus on maximizing your investment return (ROI).

Minimum Investment In Google Ads



Please note that there is no minimum investment in Google Ads. However, it's almost impossible to have a profitable marketing campaign with a daily budget of $2 or $5. According to our client results, if you want to get a minimum of six clicks daily in a competitive niche like car insurance, the average cost-per-click is $25. This means you need at least a daily budget of $150 to fulfill your goals.

One or two dollars is the average cost-per-click for the Google Search Network, and for the Google Display Network, the cost is less than $1. You can expect to invest up to $10,000 monthly on Google Ads. Please keep in mind that Google Ads is a personalized ad platform, and how much you spend each month depends on your business goals. The good news is that most advertisers gain two dollars for every dollar they invest.

The following factors determine your ads budget:

  • Keywords
  • Niche or industry
  • Campaign performance
  • Targeting settings


  • If you're new to using Google Ads, we recommend starting with a low budget. Make sure to always have enough money to invest to remain competitive.

    Bottom Line



    It's essential to avoid thinking that Google Ads works the same way as print advertising. In digital marketing, the quote is influenced by the competition for the keywords you're bidding on. Digital markets can help you determine the best marketing budget for your business needs before launching your Google Ads campaign.

    If you're eager to start your Google Ads campaign, we recommend taking small steps until you understand how the platform works. The critical element to reducing costs is optimization. The more data you get, the easier it's to uncover what is working.

    Contact RDM Agency to begin your Google Ads journey profitably.

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