When it comes to running ads and advertising campaigns on the internet, Google Ads is the most widely used tool. We’ve talked about this tool and the benefits it can bring you many times.
Now, one of the questions that worries people most when deciding to run a Google Ads campaign that generates sales is: how much should you invest?
Remember that Google Ads campaigns typically work on a cost-per-click basis: when people click on your ad, Google charges you for that click. The value of the click varies according to your industry, the competition for the keywords you use and how well optimized your ad is.
It’s a tool that delivers great results, but you need to know how to set it up so you don’t lose money.
Below we explain some points to keep in mind to determine how much you should invest in Google Ads.
Define your campaign objective
“What do you want to achieve with a Google Ads campaign?” That’s the first question you should ask yourself, because how you set up and run your campaign to get the best results depends on it.
Driving traffic to your website isn’t the same as announcing a special discount. Depending on what you’re after, you’ll need more or less investment to get the results you want.
Analyze the keywords you want to use
Before starting an ad campaign in Google Ads, it’s very important to research the keywords you want to use.
Keywords are what trigger your ads when people search for something on Google.
Keywords have a cost associated with how much they’re used: the more generic the keyword, the higher its cost, because more people are using and searching for it, while more specific (long-tail) keywords tend to cost less and give you more opportunities to reach your audience.
It’s also important to keep your industry in mind, since its associated keywords will have different values; keywords in a highly competitive sector such as car dealerships won’t cost the same as those in a less competitive one such as vaporizers.
How can you find the approximate cost per click of keywords?
You can use the Keyword Planner tool, which shows you all this information.
Just sign in to your Google Ads account, go to the Tools section, find Planning and open Keyword Planner.
There you’ll have two options: “Discover new keywords”, where you can get keyword ideas based on your product or service that can help you reach your target audience (ideal if you haven’t defined your keywords yet), and “Get search volume and forecasts”, where you can see how your keywords perform (if you’ve already chosen them).
When you analyze keywords (whichever of the two options you choose), keep an eye on these columns: average monthly searches, the top-of-page bid range and the competition level of the keyword.
With this data (in addition to knowing whether the keywords you want to use are effective), you can estimate the budget you need for your campaign.
Factors that can affect the cost per click
Although the tool gives you approximate costs per click, the price can vary depending on:
- The market you operate in (as we explained above).
- The quality of your ad copy: how appealing it is, whether it’s well written, free of spelling mistakes and responds to the customer’s need.
- A good landing page, with a good design, that loads fast, is intuitive and easy to navigate, and where people quickly find what they’re looking for.
- A coherent relationship between the ad and the landing page. For example, if your ad offers discounted shoes, the landing page should logically contain those discounted shoes.
If you take care of these aspects in your Google Ads campaigns, Google can give you higher positions at lower costs, which will maximize your budget. You should always analyze your campaign metrics, giving them a reasonable amount of time so you know what works and what doesn’t in order to optimize your campaigns.
In conclusion, there’s no exact figure for how much you should invest in Google Ads, because it depends on an analysis of your company, your industry and the search volume of your keywords. Every case is unique, and what works for one client won’t necessarily work for another.
If you want to start a Google Ads campaign that helps you increase your revenue, Gulupa Digital is here to help. We are Google Partners and experts in creating successful Google Ads campaigns.
