Google Adwords Budget Estimator: How to Create Your Advertising Budget

Want to increase your business’s online presence by investing in Google Ads?

Google Ads is a great tool to get traffic to your site. But before you start spending money on ads, you should consider these 3 key factors.

Let’s cover some of the basics.

Advertising through Google Ads has become a common practice for businesses looking to promote their brand or sell their goods and services. The program allows advertisers to bid on keywords related to their niche. When someone searches for those terms, they see the ad displayed at the top of the page. If they click on the link, they’ll be directed to the advertiser’s website.

Expanding your digital presence is key to growing your business in this day and age, and with Google’s Paid Ads, you don’t pay for an ad that hasn’t brought traffic to your site.

In fact, Google Ads has continued to grow in significance. This is especially true since Google moved all paid results out of the sidebar in 2016, pushing organic results further down the page and making google ads almost indistinguishable from normal search engine results and rankings.

Benefits of Paid Ads

Paid ads are a great way to get the word out about your business. They can be an effective tool for getting new customers, but they also have some benefits that you should know about before you start using them.

1. Increased Traffic

One of the biggest advantages of paid advertising is increased traffic. When people see your ad on Google or Facebook, it’s likely that they will click through and visit your website. This means more potential customers who may become loyal clients in the future.

2. More Conversions

Another benefit of paid advertising is that it increases conversions. People tend to spend more time on websites where there are lots of ads, which makes sense because they want to find what they need as quickly as possible. If you pay for ads, you’ll get better results than if you just rely on organic search engine optimization (SEO).

3. Better ROI

The final advantage of paid advertising is that you can track how well each campaign is doing. You can use this information to improve your campaigns in the future. It’s important to note that not all paid advertising strategies work equally well. Some methods are much more expensive than others, so you need to choose one that fits your budget.

Businesses make an average of $2 in revenue for every $1 they spend on Google Ads. (Source: Google Economic Impact Report)

So if you want to make the leap to do Ads getting your budget right is going to be critical

It’s not easy building an Ads budget. For beginners, it’s even tougher. Creating a successful Ads campaign requires careful planning and consideration of both the budget and expected return on investment (ROI).

But where do you even start? Without having some sort of Google Ads budget estimator, you may feel clueless about how much money to commit to your Ads budget and what sort of results to expect in return.

There are several factors that come into play when it comes to deciding on a budget, and it is important to plan carefully to get the best return on your investment.

3 Key Factors In Your Google Ads Budget Estimator

Keywords

Your overall advertising cost will depend on the price of the specific keywords you want to target. You may pay $5.83 for an ad with the keyword “orthopedic practice,” but $25.80 for “home mortgage.” Your product and services, as well as the popularity of and competition for your desired keyword, will determine the advertising cost.

Fortunately, you don’t have to guess in the dark for these numbers. Google’s Keyword Planner Tool is an incredibly helpful part of any Ads budget estimator toolkit.

Keyword Planner allows you to see how many people are searching for a particular keyword and what their search intent is. It also gives you some insight into how much competition there is for that term.

We recommend using other keyword strategy tools, such as SEMRush, to help you narrow down a comprehensive target keyword list.

SEMRush helps you find the right keywords to target based on your audience, industry, location, and more.

Once you have your keyword research completed, it’s time to find out which keywords are most relevant to your website and business. This is where Google Ads comes in handy. You can use this tool to determine what type of traffic each keyword will bring to your site.

For example, if you sell shoes online, you may want to focus on “shoes” or “buy shoes online” keywords. If you sell clothing, you might choose “clothing” or “fashion clothes.”

Time Frame

In estimating a budget for Google Ads, you also need to determine how long the ad should run. People tend to think that they can just setup a Google Ads campaign and be profitable right out of the gate. While Google Ads is significantly faster that SEO, it doesn’t mean that the campaign is honed and is “pointing in the right direction.

From a time frame perspective, don’t think that it’s a silver bullet.

Constant optimizations and check-ins are required for campaigns to run smoothly.

To determine your time frame, there are a few important pieces to keep in mind.

1. Consider the search volume for your intended keywords; lower search volumes may require a longer running campaign.The more you can target, the better. But keep in mind, If you’re targeting too broad of terms, it will be harder to rank in Google and other search engines.
2. If this is a brand new campaign, it can take up to three months to gather a significant baseline of data before you can adjust and optimize your campaign. This should factor into both your time and cost estimates.
3. Keep in mind the seasonality of your products or services; if you typically see a summer slump in sales, you should expect a similar slowdown in Ads performance.