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Struggling to figure out how much to spend on Google Ads? In this video, I’ll walk you step-by-step through calculating the right budget for your campaigns. You’ll learn how to set goals and make sure your ad spend is working towards your business objectives. We’ll also cover mistakes advertisers make when setting budgets and how to avoid wasting money.
ChatGPT template mentioned in video: https://chatgpt.com/g/g-67eb57a3ad10819184fdb16b5196b96f-jrr-ad-budget
Prompt mentioned in video:
My goal is to get: 5 more sales per week
The average cost per click is: $3 to $6
My current budget is: $10 per day
My ticket price is: $2k on average
My service/product is: law services
My niche is: I’m a law firm
My target locations are: Sydney
My conversion rate is: unknown
My search impressions is: unknown
My search lost due to budget is: unknown
My search lost due to ad rank is: unknown
How much more do I need to spend?
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Frequently Asked Questions:
What’s the best way to calculate a Google Ads budget?
Start by setting a monthly limit based on what you can afford and your goals. Then estimate how many clicks you might need to hit your goal. Multiply your expected cost per click by how many clicks you want. That gives you a rough monthly budget.
Can I run Google Ads with a small budget?
Yes, but you need to focus on specific keywords and keep a close eye on results. Even with $5 or $10 a day, you can test what works. You’ll get slower data, but it’s enough to start learning.
Is there a minimum amount I need to spend on Google Ads?
No strict minimum exists, but most advertisers see results starting from $500 or $1,000 per month, depending on industry competitiveness.
What factors should I consider when setting my ad budget?
Look at your business goals, how many leads or sales you want, your conversion rate, cost per click, and how competitive your market is. Also, factor in how long you want to run your campaign.
How do I adjust my budget over time?
Start small and review results after a couple of weeks. If you’re getting good returns, scale up. If not, tweak your targeting or keywords first, then decide if the budget needs changing.
Is daily budget the same as monthly budget in Google Ads?
Not exactly. Google Ads lets you set a daily budget, but it may spend a bit more or less on different days. Multiply your daily budget by 30.4 to get a rough monthly spend.
How do I avoid overspending on Google Ads?
Set a daily budget limit, use keyword match types properly, and keep a close eye on your ad performance. Check your account at least every few days.
Does targeting a smaller area help lower my Google Ads budget?
Yes. If you narrow your location targeting, your ads compete with fewer businesses. This can lead to lower cost per clicks and better control over how your money is spent.
What’s a good starting budget for Google Ads?
If you’re just starting, $150 or $300 a month is a decent test range. It gives you enough data without risking too much. But always base your budget on your industry and goals.
How do conversions affect my budget planning?
If you know your conversion rate, you can work backwards. Say it takes 100 clicks for one sale, and your cost per click is $1. That’s $100 per sale. From there, you can see if your ad spend is worth it.
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