How much are Google Ads? This is a question our clients frequently ask us when they first start working with us as their performance marketing agency. To be honest, there is no rule of thumb or ad budget that suits all businesses. It depends on the industry, competitors, keyword bids, and even the exact moment when a user searches for a specific product. However, there are critical aspects of Google Ads that can help you determine how much to spend on digital advertising. Let’s dive into these 4 Ways to Know your Ads Budget!
1. Calculating your advertising budget
The first step is to calculate your total advertising budget. This should be established before launching any type of campaign so you can allocate accordingly for every strategy and adjust based on it. Your marketing department can help you with a suggested amount for digital ads, however, a digital marketing agency or a professional ads manager can forecast more accurately an estimate on what you will need to spend for your Google Ads Campaign, keywords, and ads.
2. How much do I need to invest in Google Ads?
Google recommends an average daily budget of $10 to $50 if you are just starting. With this amount, you can gather enough insightful data to begin optimizing your campaigns shortly after launching. However, it all depends on the size of your audience, the location, and your product.
3. Return on Ad Spend (ROAS)
Of course, Return on Ad Spent or ROAS plays a major role in any digital marketing strategy…the bread and butter of every business some might say. The goal is to achieve the best return possible on your spending per ad to keep growing your business. For starters, use this formula to calculate ROAS:
ROAS = Total Ad Revenue / Total Ad Spend
A campaign investing $300 per month can have a better ROAS than a campaign investing $800 per month - so make sure to keep an eye out! Ideally, you allocate your campaign’s budget according to their return.
What is a good Google Ads ROAS?
A good ROAS varies from industry to industry, however, on average Google Ads ROAS is 13.76. So, if you are starting with ads, this platform can be a great tool for your business. Remember to optimize every aspect of your campaign or look for an expert so that your ROAS is healthy and profitable.
4. Can I start with a low budget for Google Ads?
Yes, if you are a beginner our recommendation is to start with a low budget for Google Ads and optimize your way to a higher budget over time as you see results. The beauty of this world is that you can measure your success and give your money the best use!
How can google ads help you advance your business goals?
At this point, you know the answer to that first question: how much are Google Ads? Now it’s time to ask, how can google ads help you advance your business goals? Just to mention some of them: sales, traffic to your website, brand awareness, and generating quality leads. However, to get all those results with a positive ROAS, you need to have great campaigns…
Let us help you! Here at Creatum Studios, every client has a unique project manager to ensure that your business reaches its full potential via Digital Marketing (Google Ads, Facebook, Instagram Ads, SEO, and more). Contact us now to get a complimentary SEO Assessment and evaluation of your business.