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.
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.
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.
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.
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.
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.
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.
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.
BYE BYE GOOGLERS!