Introduction
When you set your budget in Google Ads, you decide how much you are willing to spend, each day, on the ad results you want. Is your top goal building brand awareness? Getting customers to click your ad? Driving sales? You will want to define your Google Ads budget so that it supports your campaign’s objectives. This course will show you how.
What you’ll learn:
How to determine the right daily spend for your ad campaign
How to align and revise your budget to support your campaign objectives
What would you do?
Imagine you’re creating an Google Ads account for a new small business.
What’s the best strategy to set an initial budget?
Setting your daily budget
Without a daily budget, you can’t show your ads. Your daily budget is the amount that you set for each campaign to indicate how much, on average, you're willing to spend per day. Choose a daily budget based on your advertising goals and the general amount you're comfortable spending. When your average daily budget is reached, your ads will typically stop showing for that day.
Four tips to help determine your daily budget
Here are four different ways that you can calculate your budget. Try one and see which works best for you!
Calculate based on your monthly budget: If you're used to working with a monthly advertising budget, you can calculate the amount you might budget per day by dividing your monthly budget by 30.4 – the average number of days per month.For example, let's say you normally spend $1,450 per month on advertising. To figure out your daily budget, you'd divide $1,450 by 30.4 and would get a daily budget of $48. Note: Due to changes in traffic, Google Ads allows up to 20% more clicks in a day than the budget specifies. However, in any given month, Google Ads never charges more than the average daily budget amount multiplied by 30.4.
Calculate based on your average cost-per-click: You can choose a daily budget for each campaign based on your advertising goals. For example, let's say your cost-per-click is $0.10 on average, and you'd like around 500 clicks per day. You might budget $50 per day. Using this example, here's how you'd figure out your daily budget: $0.10 x 500 = $50 per day (cost-per-click x clicks per day = Daily budget)
Find your campaign's recommended budget: Google Ads shows recommended budgets for campaigns that repeatedly meet their daily budget but have the potential to earn more clicks and impressions. You can use these recommendations to estimate how a new budget may improve the visibility of your campaign's ads. The recommendations are based on the following factors: * Recent campaign performance * Current campaign budget * Keyword list * Campaign targeting settings. Note: Google Ads won't display a recommended daily budget if you rarely meet your daily budget, or if your campaign has limited data. If you don't see a recommended budget, and you know your ads aren't being shown as often as they could because your budget is limited, you might want to consider raising your budget to an amount that you're comfortable with.
Check your ad delivery method: When your average daily budget is reached, your ads will typically stop showing for that day. You'll want to consider your campaign's ad delivery method, which determines how quickly your ads are shown and how long your budget lasts during a given day, when setting your daily budget. The "Standard" delivery method is like a slow-burning candle – it spreads your budget throughout the day. The "Accelerated" delivery method is more like jet fuel – it uses your budget more quickly. Accelerated delivery is ideal for advertisers who want to show results more quickly.
Budget strategy
It’s ideal to start with a lower daily budget, and then as you see results, begin to invest more in the areas that drive your business.
Budget strategy for your goals
Let’s say Pete’s Pizzeria wants to increase pizza sales. He knows that getting new customers can be broken down into three phases:
Build awareness: Let the world know about his delicious pizzas.
Influence consideration: Encourage customers to explore his site.
Driving action: Have customers call and place an order.
The further along his customers are within these three phases, the more likely they’ll be to buy one of his scrumptious pizzas! Let’s take a look at what you might budget for each phase.
Building awareness: will require a larger budget due to the longer path to conversion and the scale at which you try to reach people.
Influencing consideration: is mid funnel and can be accomplished with a small, medium, and large ad budget. With a medium length path to conversion, a medium to large budget is preferred so you can reach a wider group of people and begin moving them to action.
Driving action: or sales is at the bottom of the marketing funnel where you typically have a small group of your target audience. You can meet all of your action goals with a small, medium, or large daily budget.
Recap
In this course we covered the different options for determining a budget, and how to set a budget based on your campaign goals. Now, ask yourself this: What are your goals and what budget will help you best achieve them?
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