Google Ads price: the budget to plan for your campaigns

Google Ads is a plan of intent : these are web users who come looking for you by typing their query on Google, immediately qualifying the traffic.

In other words, it is a super powerful growth driver, provided you know how to master it. And it goes above all through the correct definition and management of your budget ! Are you wondering how? That is what we are going to see in this article. Follow the guide!

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The budget for a Google Ads campaign: what is it?

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Start a Google Ads campaign involves setting a budget, which represents the amount you are ready to invest. On the platform, each campaign has its own dashboard with detailed statistics and reports. Here's what you need to pay attention to:

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👉 Precise budget for each campaign : ideally, assign a specific budget to each campaign, especially if you are launching several simultaneously. This makes it easier to track expenses and makes it easier to adjust strategies.

👉 Prioritization and flexibility : you have the possibility to prioritize certain campaigns over others and to modify the budgets at your convenience.

👉 Definition of the average daily budget : this budget corresponds to the amount you want to spend each day over a month. For example, for a monthly budget of €300 and a month of 30 days, the average daily budget will be €10.

👉 Total campaign budget option : this option allows you to set a total amount for the entire duration of the campaign. Google Ads will distribute this budget on a daily basis, according to traffic variations. Currently, this option is reserved for video campaigns and requires setting a start and end date for the campaign.

Each budget option has different benefits. Choose them based on your specific goals and digital marketing strategy.

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Define and manage your budget on Google Ads

Cost per click

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In a Google Ads campaign at cost per click (CPC), the principle is simple: You are only charged when someone clicks on your ad. The cost of these clicks fluctuates based on several factors:

👉 Keyword competition : a highly coveted keyword will have a higher cost due to strong competition between advertisers.

👉 Return on investment (ROI) : the cost varies according to the profitability potential of the ad. If a keyword generates a high return on investment, it is likely to be more expensive.

👉 Ad position : Ads displayed at the top of the first page of search results tend to have a higher CPC due to their increased visibility.

👉 Quality score (QS) : Google is constantly evaluating the quality of your ads, taking into account things like ad relevance, landing page quality, and expected click-through rate. A high quality score can lower your CPC.

Before setting your budget, you need to Understand the market well, select relevant keywords and work on optimizing your quality score.

Also, think about the number of clicks you want to get per day or per month. This strategic planning will help you optimize your advertising investment and maximize the effectiveness of your campaign.

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Objective definitions

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Defining the budget for your Google Ads campaign should be aligned with your specific goals. If you're aiming to generate sales, return on investment (ROI) will be a key factor.

You will have to estimate how many clicks are needed to get a sale, which will help you calculate the acquisition cost per sale and, therefore, determine a profitable budget for your campaign.

If lead generation is your goal, you should Set a maximum customer acquisition cost. In other words, figure out how much you're willing to spend to convert a lead into a customer.

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Here are the steps to follow to set your budget:

👉 Defining the objective : Clarify your main objective (sales, leads, site traffic, brand awareness, etc.).

👉 Estimated cost per click (CPC) : Look at the average cost per click for keywords that are relevant to your campaign.

👉 Determination of the desired acquisition cost : Set the maximum price you are willing to invest for each click, taking into account your objective of cost per acquisition or return on investment.

👉 Daily and monthly budget calculation : Based on this information, calculate your daily and monthly budget.

Google Ads manages your budget based on your maximum spending limit. The platform will show your ad whenever the cost of a click is less than your maximum budget per click.

You are guaranteed to manage your budget effectively, avoiding overspending while maximizing the exposure of your ad.

Clearly defining your objective and understanding the cost per click are essential to establishing an effective Google Ads budget that meets your needs while staying within your financial limits.

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Determine the right budget for your Google Ads

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👉 Let's take a concrete example :

Let's say you set a maximum CPC of 0.30 euros per click and aim to get 500 clicks per day, your maximum daily budget would be 0.30 x 500, or 150 euros per day.

Over a month of 31 days, your monthly budget is 4650 euros. It is the maximum investment you are prepared to make.

With Google Ads, the CPC charged may vary depending on the auction, but your budget will never be exceeded. This approach offers some security, but it is very important that the budget you set is in line with key elements such as the competition and the choice of keywords.

If your advertising budget is too low compared to market realities and your goals, you may not reach the number of clicks you want.

Google Ads also offers a “recommended budget” feature. This option is based on various criteria, such as:

👉 The recent performance of your campaign;

👉 Your list of keywords;

👉 Your targeting settings.

The aim is to help you determine an appropriate investment amount for your advertising campaign. This recommendation can be a good starting point, especially if you are new to the world of ads and looking for directions to optimize your advertising investment.

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Concretely, what budget do you need to do Google Ads?

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We are not going to mince our words: for less than 3k, it is better to give up, because you will be under the competition and will spend your budget for nothing.

The ideal is between 3 and 7K/month, because it is a good start to be able to do tests and look for an initial profitability for your business. The challenge is to make as many conversions as possible within this budget range, in order to then focus on scale. If you have a budget of more than €7K, the challenge for your business will rather be to increase the volume of conversions, while maintaining the right cost per acquisition (which in general soars as the budget increases since the budget increases since we target more widely. For this, an expert agency, like Growth Room is very interesting because it knows exactly how to optimize your budget according to your sector!

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Quick tips made in Growth Room:

👉 Start with a low budget and a short keyword list, and build up as you go to find the right bidding level that will get you the lowest cost per conversion possible.

👉 The KPI “Rate of impressions lost on the Research Network (budget)” should be analyzed regularly, this will give you information on the visibility lost due to the lack of budget.

There you go, you now have all the keys in hand to define and manage your budget. However, determining the right budget for a Google Ads campaign is still relatively complex. For this reason, it is often recommended to use an agency specialized in web marketing. Discover the Top 5 best Google Ads agencies.

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