Orlando Google Advertising Company | Your Google AdWords Budget

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Whenever our Orlando Google Advertising company takes on a new client, we always get the same question: “how much do we have to spend on our pay-per-click-ads?” Our answer is always “it depends”. Compared to ordinary advertising channels, Google AdWords is built more similarly to an auction marketplace. Therefore, the amount on Google AdWords depends a lot less on the channel itself and more on your industry. When you bid for clicks in Google, you’re only bidding for clicks that are relevant to you and your competitors. When it comes to setting your budget on Google AdWords, the only thing that matters is how much you and your competitors believe a potential customer is worth.

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What’s the Minimum Amount You Should Spend on Google AdWords?

There is no official minimum ad spend on Google AdWords. However, it doesn’t mean that you should start working with a really low daily budget. Our Orlando Google advertising company suggests you set a minimum budget of whatever it will cost to accumulate 100 clicks on your ads. The more clicks you can afford, the more your future advertisements can be optimized for increased profitability. Keep in mind that it is extremely rare to create a perfectly optimized ad the first time through. Consider the first three months of the campaign as an experimental phase. That way, you will have plenty of data to use to optimize your ads during the next phase.

How to Find Out How Much Your Cost Per Click Will Be?

If you are basing your cost per click on the wrong keywords, you’re setting yourself up for failure. Because of this, you will end up being overly optimistic in terms of how little budget you need. The good keywords are more expensive than other keywords because of the tough competition. There is a higher competition because there is a higher ROI associated with the keywords. For example, a potential customer is much more likely to be looking for an actual cleaning company if they use keywords like cleaning company in Boston vs keywords like cleaning, service, etc.

Long-Term AdWords Budget According to Our Orlando Google Advertising Company

Once you’ve gathered plenty of data on your click-through-rates, conversion rates, customer value and cost per click, you can create advertisements that are almost guaranteed to be to be profitable. If you know your advertisement has an average conversion rate of 3% and an average cost per click of $1, you’re probably making a $0.50 profit per click. At this point, you should invest as much as you can into an advertisement.

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Figuring out your Google AdWords budget can take a little more time (and money) than expected. It’s important to remember to use the correct keywords when calculating your costs. At the end of the day, you should spend as much on Google AdWords as makes sense for you. If you’re not getting a positive return, consider reaching out to our Orlando Google advertising company. Our experts have the knowledge to ensure that you are getting a positive return and spending as much cash flow as your business can handle. Contact us today for an internet marketing analysis!

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