For small businesses, promoting products or services all the while competing with mega-giants companies like Walmart or Amazon is quite intimidating. However, Google Adwords makes it easy for small business owners. With Google Adwords, you can bring better ROI even with a small budget.
In this article, we will dive deep into how Google Adwords can help you target the right audience and increase conversion rate.
How Small Business Should Budget For Google Adwords:
One of the biggest advantages of Google Ads is that you can control exactly how you want to spend. This isn’t like your traditional prints ad that costs according to size, page placement, and color. Google Adwords uses a cost-per-click method. As a result, you can start small and scale up according to your budget.
Start With A Test Budget For Google Ads:
Initially, you should contain your costs. Because you still don’t know what’s going to work for your business. This is your testing period. This period may work out for you or may not. That’s why you should have a mindset that you are only investing in market research.
Once you are done with your market research, you will gain insights into what will work for you and what will not. This research will tell you which keywords are converting into leads, what ad messages are resonating with your target audience, and what’s driving traffic to your website.
Minimum Amount you Should Spend on Google Ads:
There isn’t any fixed minimum amount you should spend on Google Ads. if your daily budget is $2-$25, it will be hard to profit from that. If your mindset is that you will only increase the budget after seeing some good results from the test period, then you are not playing it right.
But as you acquire data, you should start budgeting to reach at least 6 clicks per day. For example, if you want to show ads for car insurance that has a CPC of $25, then you should create a budget to spend at least $150 a day to get 6 clicks.
Monthly Budget You Should Allocate to Google AdWords:
Depending on your product, and targeted audience and location, your budget should be roughly $1,000-$10,000 per month. However, you should only allocate this budget after you have done enough market research.
If you are only using Google Adwords for the first time, then you should definitely prepare a low budget. As you gain more insights, increase the budget. This will allow you to be competitive and get those targeted clicks. Whether you gain qualified clicks or not, you will get one thing for sure. And that is valuable data.
Run A Successful Campaign With Google Adwords:
To run a successful Google Ads campaign, you have to understand its strengths and weaknesses. Google Ads can only bring you better ROI if you can target the correct audience. However, Ads need ongoing investment as every click is paid for. For brand awareness, it’s not a cost-effective tool.
Google Ads are excellent if your market research for keywords is accurate. So when designing your Ads campaign, make sure you are targeting keywords that will increase conversion rate and generate sales.
How Much Should You Spend On PPC:
It’s hard to say how much you should spend on Google Ads. Your budget could be between $50-$10,000 per month. However, the amount should depend on your sales goals, your targeted location, search volume, and CPC.
If your targeted keywords are related to legal industries, insurance, or financial services, then your allocated monthly budget for PPC should be between $9,000-$10,000. On average, Amazon spends $50 million on PPC every year.
Google Adwords is complicated. But as long as you focus your strategy around being profitable, you are sure to drive more traffic to your site and grow your business over time.