Budget planning is one of the most important aspects of Google Ads campaigns. If the daily rate is set at the wrong level, we do not have a chance to return the investment, but also to achieve the desired results. How to set the amount for Google Ads and how to budget properly, but gain rather than lose?
Daily budget versus shared budget
In Google Ads, we can distinguish between two types of budget. The first is daily, concerning the amount we allocate each day for advertising purposes. The monthly amount for advertising activities is calculated by multiplying the average daily amount by the average number of days in a month, which is 30.4. At first it is good to start with lower amounts and, observing the effects, increase it gradually.
The second type of budget is the shared budget, which is often used for campaigns that accomplish more goals. Google Ads automatically sets amounts for specific campaigns so that you get the maximum return on investment.
Keyword price
The amount we want to spend on Google Ads depends on the goals we want to achieve, our individual financial capabilities and the size of the competition. The more popular the industry, the greater the competition. To estimate the cost of a campaign, the Keyword Planner will certainly come in handy. It allows us to learn the phrases that best fit our industry, find out how often they are searched in Google and what their price is.
It can be useful to simulate a campaign. In this way, we tentatively determine the budget we will need to achieve the traffic we expect. Keyword rates vary depending on the number of searches. The most expensive are, of course, the most popular ones, but also those that clearly indicate an urgent purchase of a particular good or service, such as caregiver for the elderly for the weekend.
Effective practices for measurable benefits of Google Ads campaigns
Google Ads tools provide us with a wealth of data on our users' behavior. It is worth using them when optimizing our budget. An example is setting a higher rate for a specific location from which there is more interest in our services. Along with a Google Ads campaign, it is good to take remarketing actions. It is not always at the first contact with the brand that a potential customer decides to buy, sometimes he needs more time. The ad displayed to him is to remind him of you and a specific product.
Just creating and running an ad is not enough. We need to know if it has the desired effect, is effective and is a good investment. For this we need tests and their results. In addition, we monitor the statistics on an ongoing basis and make the necessary changes if necessary.
