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How Much Should I Spend On Google Ads?

As a digital marketing agency and SEO company specializing in both paid SEO (Google Ads) and organic SEO, we often get asked the question, “how much should I spend on Google Ads?” This isn’t going to be a long blog post because the answer to the above question is a fairly straight-forward one — one that focuses on Google search advertising vs. Google Display advertising, or Google’s hybrid form of advertising, known as Google Performance Max.

How To Set A Google Ads Budget That’s Right For Your Organization

When deciding what $ figure to set your Google Ads Search advertising daily budget to (your budget is set at the campaign level and is entered as a daily amount you’d like Google Ads to spend on your media/ad buy vs. a weekly or monthly amount), you should keep the following in mind:

  • What Size Google Ads Ad Spend Can You Afford To Carry/Cover On Your Credit Card? You will need to provide Google Ads with a credit card that it will debit for your ad spend/ad buy. Normally, your card will be charged once or twice a month to cover the cost of clicks on your ads (you will be paying for ad clicks vs. ad impressions (the serving up of your ads to one set of eyeballs/searcher) that have accrued since the last time Google Ads charged your account.
  • What Is The ROI (return-on-investment) For Your Advertising? As long as the money/revenue you are making from actual product sales or engagements for services generated by your ads outweighs to a decent degree the cost of your advertising and other acquisition-related costs (such as someone’s time processing an order generated by an ad), and you are financially comfortable accruing and covering the associated ad spend, you likely will want to continue running your ads, but also test the results of “upping” your spend. As long as your Google Ads continue to generate a positive ROI, why not keep employing and testing a slightly higher ad spend every 2-3 months?
  • Are There Enough Opportunities For Google To Serve Up Your Ads To Your Target Audience In Your Geography For Relevant Terms? This equates to are enough people who meet your targeting criteria (age, gender, income level, parental status, plus geography), searching on relevant terms in Google? This can be assessed by checking to see if your initial or increased daily budget is being fully used 85% or more of the time — therefore, the total cost shown in your Google Ads account for any particular campaign (charges accrued for ad clicks, which equals the # of ad clicks generated times your average cost-per-click) associated with your advertising for a particular timeframe fairly closely aligns with the budget you set for that timeframe.
  • To What Degree, Will Your Google Ads Cannibalize Your Organic (Unpaid) Search-Engine Traffic? An SEO Rankings Audit and/or a review of your organic search volume and nature, using your Google Analytics and Google Search Console accounts, will help you determine if there are big concerns about your paid ads causing appropriate searchers to not find you as frequently for an organic listing that comes up in search results because search ads are appearing too frequently above organic listings that link to your website or Google My Business Profile. If proper conversion-tracking is set up on your website, you can determine which form of traffic — paid search/Google Ads vs. organic search traffic “converts” better, i.e., causes website visitors to complete meaningful actions on your site, such as e-mailing you, or completing a contact inquiry form. As you continue to increase your budget, keep an eye out for shifts in the degree to which individuals are landing on your site from an organic search. If your organic search traffic converts better than paid search, you may determine a particular ad budget/ad spend doesn’t make economic sense for your organization because you are cannibalizing too much profit-producing organic search traffic, and you may want to decrease your budget, so that your paid ads appear less frequently.

What Google Ads Daily Budget Should I Start Out With?

We recommend that, at a minimum, you launch any brand new Google search advertising campaign with a daily ad spend that equates to $500 a month, so roughly $17.00 a day. If, by employing conversion- tracking, you are able to determine that your Google Ads campaign ROI is positive, then we suggest making small incremental upticks in daily budget spends, as discussed above.

While Google Ads’ keyword planner tool provides an estimate of what the cost-per-click might look like related to a particular search phrase for which you’d like your ads to be served, it is just that — an estimate. Many factors influence your cost-per-click, such as the number of competitors in your marketplace who want their ads served up for the same terms you do, the click-thru rate on your ads, the Google Ads optimization score assigned to your ads, and how cohesive Google views your keywords, ads, and ad website landing page to be.

Does Google Ads Offer Nonprofits Discounted Advertising Pricing?

Well, actually, yes, in a way they do. As we explain in our blog post about the benefits to nonprofits of Google Nonprofit Ad Grants, nonprofit organizations who qualify for such grants are able to employ $120,000 in free annual Google Ads search advertising.

Got Google Ads Questions? We’ve Got Answers.

Our team has roughly 15 years of Google Ads experience — from both corporate marketing, and consulting roles — related to executing, optimizing, analyzing, and reporting on Google Ads search, display, and Performance Max campaigns for nonprofits and for for-profits of all shapes, sizes, and industries. We’d be glad to chat with your organization on a complimentary basis about whether or not we believe Google Ads advertising makes sense for your particular organization.

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