How much should I be spending on Google AdWords?

One of the most frequent questions we receive in terms of PPC marketing is “How much should my business spend on Google AdWords”. Every client is different and every campaign is customizable to your business and goals. With that being said, Big Marlin Group believes there are a few factors in which clients should determine how much they want to spend. The greatest part about using Google AdWords is that you can customize how much you spend daily and monthly with one simple step.

It’s About Your Business

Depending on what type of business you have, you may have to spend more money on keywords than others. The first important thing to determine your budget is to find out how much certain keywords cost. A great tool that Google AdWords offers is the Keyword Planner Tool. Here you can plug in the keywords that apply to your company or business and determine an estimated amount of how much each keyword will cost. Since these numbers are just an estimate, you may need to over-budget to fill in the unknowns of those keywords may cost.

Tracking

Tracking how people get to your ad by using a landing page on your website where they can fill out their information and how they heard about your business is a huge advantage. This will help determine your ROI and see if your AdWords has been successful. You may see that you receive hundreds of clicks a month, but if you don’t close a deal, then essentially you ROI will be lower.

Tracking where customers came from will determine the earnings per click. If you are seeing results from AdWords and seeing conversions, it may be a good idea to increase your budget in hopes of seeing a higher conversion rate. You can also have the goal of a high ROI rate, which may not always mean an increase in spend even if you are seeing conversions.

When you start out, you can test your AdWords campaigns with a small budget and increase from there. It is important to remember that results do not usually happen right away, patience is key! If your product or service has a high value, you may want to start out with a higher budget especially if your keywords that are directed to your business have a higher cost. Any budget can start from $1,000 to $10,000 a month. There is a point where you could be spending too little. By starting at the bare minimum, your ads and ROI won’t grow or see the traction that you may be looking for.

Negative Keywords

One AdWords feature that many people forget about is adding negative keywords to each ad group or campaign. This will help you save money on keywords from specific searches that don’t apply to your business. When adding keywords, stick with modified, exact and phrase match for the best results. For example, if you are a window glass company, you don’t want to have the generic keyword ‘glass’ as it could draw in people who are searching for other types of glass, such as ‘glassware’ or ‘auto glass’. The more specific you are with your keywords along with adding negative keywords, the more you will save on unwanted clicks.

More Money, More Clicks

The more money you spend on Google AdWords, the more clicks you can receive, which in return will hopefully give you a higher conversion rate. If you have a yearly budget, but want to spread it out, don’t spread it out too thin. Think of using Google AdWords as an investment for your company.

When considering AdWords remember to calculate spend by using keywords that directly relate to your business, ad spend will always fluctuate, and the amount that you spend will depend on the type of industry you are in.

Your Certified Google AdWords Preferred Partner

Big Marlin Group is a fully certified Google AdWords preferred partner. We have the in-house knowledge and expertise to build your Google AdWords account from the ground up or take over an existing account to make sure you’re getting the biggest bang for your buck!

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