Google, being the largest search engine ever made has become a platform for all kinds of people, for the learner to learn, the customers to buy and the marketers to market themselves. Since the year 2000 when Google launched its AdWords services, people in the business industry knew this is going to be a great tool.

Google AdWords is basically an advertisement system crafter to the advertisers who bid on certain keywords which can appear in their searches that people make on Google. The clicks that people made through these keywords showing in their search results are on the paid basis, which means that Google gets Paid Per Click (PPC).

For this system to work, the company needs to bid on some most relevant keywords and that’s the only way to assure that this is going to work for it. Google AdWords is a highly effective technique which can ensure great results and traffic on your website if used properly.

Now that the only hurdle that comes before any business to run online is that they need good traffic on their website. Only then they can sell their product if there’s no traffic on their site then there’s no point on investing muckle of money on marketing and advertising campaigns.

Even with something promising such high ROI, companies are often taken aback in investing on the Adwords services, the reason being the proper budget and investment plan. For this purpose, the Adwords also allows the business to put a small initial investment where they only have to pay if there’s any click done.

If there’s no activity done at all, the company does not have to pay. This makes the Adwords the best investment to make especially you’re a small business who has just entered into the market and want to gain more traffic your website.

Defining a budget can always be a tricky task and for such investments, you have to be very smart in creating your budget. Here are a few points to remember while you’re making your budget for the Google AdWords.

How to Decide Google Ads Budget

Having a fresh business on a small level, it’s inexcusable to burn money on something that you are not sure about. Adwords can be a little costly and to make sure that you are on the safer side, you can conduct a small trial of your keywords.

For say, put small money that will not hurt to be lost, in the worst case scenario and put bids on your properly researched and verified keywords. Once you have done that, you will have faith in your keywords and know if they are good enough or not.

Moreover, relevant rectifications can be made accordingly and you will have a better perspective on how much it is going to pay you back. You can get a vague budget for this trail run by simply multiplying the number of keywords you want to test by the cost per click and also by a minimum of 100 clicks considering that you will at least want about 100-200 clicks on one keyword.

If you have taken 10 keywords than by the end of your campaign, you will have a mix of keywords that will have winning and losing keywords. You can keep the ones that brought you good traffic and drop the ones that didn’t work out so well.

Once the whole trail campaign is successfully run, you now have a clear picture of what you want to do next. Obviously, you are not going to stick to these test runs forever, you will now make a full-proof and systematically planned budget for a real-time advertisement campaign.

If the test advertisement was a hit for you then you should not over think about investing in it. Adwords are usually a hit given that you have done a proper work on your keywords. Make a good investment on your Adwords and do not worry about it too much.

The main reason why we are scared to invest on something like this is that we are not sure about it return on investment. While you’re making a budget for your AdWords campaign, you should know that this is going to pay you back really well.

If you’re investing $1 at it, it will give back $1.5 or $1.25. At the end of the day, even if you are investing $10000 at it then you should know that it’s all going to make a good ROI.

The budget is made considering many other factors like the nature of the company, type of company, financial restrictions and the requirements of the traffic and so on. Let’s have a look at what all factors should be kept into consideration when you’re making your budget.

Market and Competitors

For your Adwords to work, you have to conduct good research on what the market or your consumers want to read, that way you can come with up with most relevant content and keywords.

It’s also equally important to do research on what your competitor is doing. Try to dig in the keywords that they are using in their campaign. There are certain tools on the internet that can help you find that out.

When you know the most and least effective keywords according to your competitor, you can use them in your content as well. You can also try to get an insight into their budget, that way it will be easier for you to decide how much money you want to put in your campaign.

Your Desirable Position

Your budget will be determined by your position in the Ads. If you want to appear in the top 4 Ads then your CPC will also be higher thus, making your budget heavy.

Determine what you want your position to be and then create your budget. Things that you can do to make your exposure more prominent is bidding higher, adding all applicable ad extension and creating relevant ads.

Desirable Traffic

Plot down the number of conversions you want on the weekly, monthly or daily basis. Keeping a track of how many conversions are required will help you in making your budget.

This way, you will not put extra unnecessary money on the bid which may get you a lot of traffic but this traffic will be more than your desired rate. Being a small business, keeping such records of how many inquiries and traffic you need every month to set your goals more clearly. It will also help you in putting the right bid amount.

Don’t Be too Firm

You should remember that whatever budget you are setting isn’t going to be the same always. It will keep on changing with the time and demands. You don’t have to make really long-term plans with that budget.

If your campaign isn’t working out too well for you then you can cut off some money from it and if your advertising campaign is running amazingly well then you can add some extra money to it and put it on a larger scale. There’s a metric in Adwords called Impression Share. It helps you in understanding how much more money you can spend on it.

Know Your Audience

If you are a small business and you are targeting a limited portion as your audience then your budget is definitely not going to be much.

You will just put money for the desired audience to click on your keywords. If your audience is nationwide then, you will probably have a bigger budget with much bigger room for growth.

However tricky it may appear to you. Google AdWords is definitely your key to a successful advertising campaign. It’s worth giving a shot and given its efficient ROI, you are in lesser danger than the other advertisement tools to try.

Once you get yourself involved into it, you will gradually start to learn more about it and defining your budget for the next Adword campaign won’t be a tricky task for you as you can easily track your results and see the loopholes which can be fixed or dropped in the next campaign.


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