EMBiz: How Much to Spend On Google Ads

How Much To Spend On Google Ads

Cody H. Owens

Hi, Cody here with Elevate My Brand. And I want to answer a question for you that we commonly get from clients, which is how much should I spend on Google Ads? 

Budget Effective Approach To Google Ads

There's a lot that goes into that and I would preface by saying that if you're coming to us because you are a startup or a baby brand and you want to start Google Ads, we always recommend that more of a phase two approach because there's a lot of learning that needs to happen before you really start Google Ads. It's a long game and is more expensive though potentially more highly converting than other methods. So I would definitely recommend that if you're not sort of in the phase two part of your marketing journey, that you kind of table this until you've done a lot more research and testing and A/B testing and other ad platforms, which we have lots of videos on that. 

How Much To Spend On Google Ads

But if you are in phase two and you're ready, then that's a really great question to be asking. How much should I be spending on Google Ads? Well, there's a lot that goes into that. 

So first of all your industry, for instance, if you're in the legal industry, then you're going to have a much higher cost per click and you're going to have to invest way more in Google Ads than other people in other industries. If you're in a more niche industry, then you can probably spend a lot less. 

Another factor is competition. If you are a very unique product or service, and you don't really have a lot of competitors, then you can probably spend a lot less because you're going to have a lot less competition in the market. But if there's a lot of competitors, then your cost per click is going to go up and you're gonna have to spend way more. 

Other factors include ad types. So if you're going to do a Search or Display Ad, depending on what your goals are, if you're looking for visibility display is going to be really good for you because you can reach a ton of people. And then Search just may gonna change the way that you spend on Google Ads. So the ad type and your goals are gonna really impact things which are again, you wanna speak to your ad representative or your marketing agency about that also you're targeting.

If you're going to be targeting on specific devices or specific regions that's going to impact the budget and the spend also your bidding strategy. What are your goals? Do you want visibility? Are you wanting conversions for form fills? Things like that and then lastly the scheduling, so if you're going to do on certain days or certain times of the month, things are going to change that way as well. So there are a lot of factors that go into it. 

What Should My Google Ads Budget Be?

Google typically recommends that if you're just starting out, you need to spend between $10 to $30 per day, which comes out to about $300 to $1500 a month. Now, if that seems like a lot to you, then again, I recommend that you go play around on other ad platforms and try lower spend and high velocity A/B testing to see what you can learn before you get to Google Ads. But if you're not scared by that, then I would recommend you start on Google Ads, start there. See if you're getting the conversions and that kind of thing and then ramp up your budget from there. 

Additional Google Ads Tools

The last thing I'll leave you with is that there are some software and tool out tools out there that can actually help you see what your competitors are spending and what the average cost per click in your industry is to kind of help you reverse engineer what that should look like. So if this is the average cost per click and we think it's going to take this many clicks in order to get a conversion, what should our budget be. 

Final Thoughts

Now, if this all is scary to you, then a marketing agency may be the way to go because we do this all the time and we can help you set that marketing budget to tell you how much you should be spending on your Google ads.