How much budget should you spend on your Google Ads campaigns? How to manage it? In the illustration, we see different screens of advertising campaigns
How does a Google Ads campaign work?
As you probably know, Google Ads campaigns are the cornerstones of any good paid acquisition strategy , since they ensure maximum positioning for your ads on the most popular search engine. However, you should be aware that the impact of your advertising depends largely on the relevance of your keywords and the effectiveness of your advertising message . Indeed, keywords must not only have been carefully chosen, but they must also have been designed to be the cornerstone of your CPC (cost per click) bidding strategy, a vital mechanism of Google's AdWords platform.
When creating your ad, you should already clearly determine the marketing objective, the bidding strategy, the type of advertising (display, video, SEA, etc.), and above all, allocate the campaign budget wisely. Each ad should aim for maximum optimization of clicks and conversions , while ensuring to attract quality traffic to your web page .
A daily budget adjustment, based on performance and results obtained, is also crucial to maximize return on investment. The latter may also be impacted by the selection of keywords which, as we have just seen, must be done according to the desired targeting and in accordance with the search terms of your potential customers. This is the sine qua non condition to guarantee optimal visibility for your ads.
In addition to setting a spending limit, always keep in mind that a thorough understanding of the various campaign types , cost per acquisition (CPA), and available optimization tools can radically transform the performance of your ads. No matter what, your goal is to drive qualified traffic to your site while maximizing conversion rates and minimizing wasted spend .
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Our advice for estimating your Ads budget
Google Ads is certainly a pillar of SEA marketing , but it also band database requires a meticulous selection of your keywords to improve the visibility and positioning of your ads. Except that with so much optimization, expenses can quickly become significant . The key to maximizing the impact of your ads at a lower cost therefore lies in strategic management of your budget. To help you, let's take a look at the advice to follow on this subject.
Establish an average budget for your campaigns
First of all, launching a Google Ads campaign always involves setting an average daily budget, starting with the upper limit that you should never exceed. Of course, you can also opt for a monthly budget , in which case Google will adjust your daily spending based on traffic. Unfortunately, this option is mainly available for video campaigns.
In any case, rest assured, the system is flexible enough to allow you to set a budget without any minimum amount constraints . But always be aware that investing a higher amount can potentially increase the reach and performance of your ads. To predict your costs more accurately, take into account the CPA (cost per acquisition) by calculating the amount you are willing to spend for each conversion . For example, you can divide your total expenses by the total number of conversions.
Good to know: Google Ads offers a “recommended budget” feature , based on factors like the relevance of your keywords and your ad targeting settings. So this is a feature that can help you get the most out of your investment while still achieving your marketing goals.
Define your strategy to structure your Ads budget
Defining a bidding strategy that aligns with your ad content and marketing goals is critical, but far from simple. As such, you have several bidding methods to choose from:
The CPC (Cost Per Click) strategy , with which you only spend if a user clicks on your ad;
The impression-based strategy , which allows you to consume your budget based on the number of times your ad is displayed;
The CPA (Cost Per Action) strategy , with which you only invest if the user performs a specific action (subscription to a newsletter, etc.);
The CPV (Cost Per View) strategy , a YouTube-specific option that only charges if the video is viewed in its entirety.
The cost per click (CPC) strategy
The cost per click (CPC) strategy is undoubtedly one of the most popular, even if it involves taking into account the CPC of the chosen keywords and their monthly search frequency. Before proceeding, it is also recommended to carry out a competitive analysis to distinguish the best performing keywords in your field. Also read our article “ Google Ads Benchmark: How are your campaigns performing? ”
Know that with a predefined budget, you can distribute it over all the days of the month to obtain a daily average. However, you must remember to determine the maximum CPC (your highest bid for a keyword) and the average CPC (the average cost per click on your ad). It goes without saying that the more keywords are requested, the more expensive they are. To avoid being surprised, a thorough analysis of the market, the search trends of your target audience and the tactics of your competitors is essential.
Also, keep in mind that CPC is influenced by several factors, starting with your ad’s Quality Score , its position, the competition around keywords, as well as your profit margin. To adjust your budget as best as possible, you must therefore find the right balance between your commercial ambitions and the realities of your market.
