How to Plan and Invest Your Google Ads Budget

Google Ads, formerly known as Google AdWords, is a powerful tool for business owners, managers, and marketing experts. It allows you to generate hot leads, promote your business and reach the right audience. If you are looking for ideas on how to plan and invest your Google Ads budget, then read on. Here are some handy tips we have collected for you.

1.       Determine the Initial Budget

The first step to planning the Google ads budget is determining how much money you want to spend every day, week, or month. For that, you need to take care of the following:

What do you expect from Google Ads- Here, you will decide what performance you expect from Google Ads and how many leads do you want it to generate for you.

How Much Are the Competitors Spending- Do some online digging to find out the amount set aside by your competitors from the same industry.

How Much Costs Per Click for the Keywords You are Bidding On- Use the Google Ads Keyword Planner to determine which keywords are the right ones for you and how much each of them will cost you.

Which KPIs are Vital for You – Most businesses consider that cost per acquisition or CPA is the key performance indicator for them. If you are all about numbers, you might make this a KPI. You can also pick other KPIs like brand awareness, customer influence, etc.

2.       Allocate the Budget Wisely

After you have set the budget for Google Ads, the next step is to allocate it wisely. Every Google Ads search campaign will fall into one of the five primary categories. They are research, competitor, branded, top performers, and high intent.

According to logic, most of the budget should be focused on high-performing keywords. Then, your focus should turn towards keywords associated with your brand, as you can use them to boost brand awareness levels and enhance your brand image. The next logical step will be choosing competitor keywords and ensuring that your content justifies how you are different from the like you offer better pricing, more variety, etc.

You should also reserve some money for high-intent keywords. Examples include keywords that have words like buy, deal, discount, coupon, or free shipping. Targeting product/service keywords or branded searches like cheapest, affordable, top, review, and comparison is also wise.

Make sure you change the keywords and budget allocation every week to ensure that you get a maximum Return on Investment.

3.       Budget for Other Offerings by Google

Once you are done planning and investing in Google Ads, the next step is to set some money aside for other offerings by Google like display, remarketing, etc. The clicks on display ads are cheaper as compared to traditional search.

The display ads will help you to highlight the products, boost brand awareness and help with the sales process.

Remarketing is also important as it will help convince more visitors to convert into customers who earlier showed interest but later changed their minds.

Final Words

Planning and investing your Google ads budget is easy if you do it right.

Need more? Read about the types of Google Ads here

Also, have a look at the costly Google Ad mistakes and how to avoid them by clicking here.


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