Google AdWords is the world’s most prominent platform for PPC advertising.
There are many compelling reasons to consider a PPC campaign. People who click on ads are more likely to buy something from you. Online ads are also effective in spreading brand awareness and generating leads.
It’s no wonder the majority of all small to mid-sized businesses (SMBs) run PPC campaigns.
The only problem is nobody has money to burn. You have to be careful not to overspend or invest too little. Figuring just the right Google AdWords budget is tricky, as you have to take into account a host of factors.
No worries though--we’ve got you covered. This guide will help you reach informed decisions and become a good steward of your budget.
Facts and Figures
Google AdWords strategy hinges on a system of live auctions.
Ad Rank algorithm determines both what ads will be placed and how much they will cost. To deploy your assets, you have to outbid the competition for specific keywords. Your ad quality also plays a role in shaping the outcome of the auction.
The beauty of it is you only pay when a user clicks on your ad.
Thanks to this simple setup, the platform can be a rather cost-effective vehicle. Return on investment (ROI) is solid for those who play their cards right.
When looking at average spending, SMBs invest from $9,000 to $10,000 on Google ads every month. Of course, this is just the median range, not some hard rule you have to follow.
After all, AdWords enables you to create your budget and choose where to bid. Not only that, you can change these parameters at any given time.
You’re in full control of your ad strategy.
Working Out a Game Plan
The million-dollar question is what do you do with that customization freedom?
Well, you have to plan, plan, and plan. Set your strategic goals with the focus on achieving maximum ROI with PPC ads. With that purpose in mind, designate the total amount you can afford to spend.
Notice you can then set daily and monthly AdWords budgets for each campaign you have in place.
Some firms opt to create campaign groups or go for shared budgets. The latter approach entails multiple campaigns sharing the same budget.
All of these tactics can prove fruitful depending on your needs.
We also want to emphasize one strategy that has served many SMBs well. Namely, you can break every campaign down into three separate campaigns in order to boost your reach.
These three categories are Mobile Search, Display Network (Remarketing), and Google Search. As you can see, one of the main challenges is how to allocate a PPC budget across multiple campaigns.
The Big Picture
To make educated decisions, you can do some forecasting.
For example, tap into external news sources to stay abreast of emerging trends and patterns. Utilize Google Keyword Planner and check out traffic estimates.
A projection sheet is a good way to put your expectations and findings into a long-term perspective. You can set a final destination, where you plan to arrive at the end of the calendar month.
The factors that affect your mathematics are the industry sector you operate in and your products and services. When talking about the industry sector, we have to emphasize the level of competition, which drives prices up and down. For instance, in the advocacy sector, the average cost per click (CPC) is much higher than in the legal sector.
These price swings force you to invest more in order to win bids and reach customers.
That said, you can try to stretch your marketing budget by hunting for less competitive keywords. These tend to be less-obvious terms and more on the creative side. We recommend exploring very specific, long-tail keywords before taking the plunge.
Their search volume is lower, but the price and niche appeal make up for that. Instead of a "local lawyer", for instance, you can bid for "San Diego elder law attorney."
The Workings of the Google AdWords Budget
CPC isn’t the only part of the budgeting equation.
It’s necessary to make room for additional expenditures too. They are related to PPC management practices and PPC software solutions.
When it comes to management, many firms decide to collaborate with PPC agencies. They outsource crucial tasks and pay a monthly fee. The campaign management rates vary and they come on top of regular ad spend.
Moving on, PPC Software is an essential component in any PPC arsenal. It streamlines many management tasks and saves money in the long run. You can use it to fine-tune your bid and accurately evaluate ads.
Check out platforms in the league of Adzooma, Optmzyzr, QuanticMind, and ClickCease. These are feature-packed solutions from renowned providers. They offer easy automation and fuss-free cost management.
A Process of Ongoing Optimization
SMBs tend to start small and launch test campaigns first.
After that, they gradually increase their spending in response to the results. This kind of smart approach pays dividends because PPC plays out in real-time and is geared toward high scalability.
Therefore, put your analytic tools to good use (Google Ads Dashboards is a must-use). Gather every bit of data related to ad performance, such as the number of times your ads were served and how many people clicked on them.
You also want to keep a close eye on conversion rates and cost per acquisition (CPA). Feel free to add other metrics to the formula, as long as they reflect your goals.
Based on these insights, you can adjust your ad spend in real-time. You may not be able to get immediate results and that’s ok!
Simply continue testing and learning.
The ultimate goal is to discover your winning keywords and click-magnet ads. You then focus your resources on these revenue-drivers and focus on outmatching the competition.
Take Your PPC Game to the Next Level
Setting a realistic Google AdWords budget can be a trial and error process.
The short answer to how much ads cost is the following: It depends on many things. Hence, it’s of paramount importance to do your homework.
Start by getting familiar with how exactly the auction system works. Investigate industry benchmarks, and scope out what your competitors are doing. Account for all the factors that produce variance and influence ROI.
Take advantage of pricing flexibility: Exercise budget control and conduct data-powered scaling. Make sure to do some forecasting and optimize your campaigns on the fly.
Following these steps, you’ll influence the purchase decisions of consumers and improve your bottom line.
If you seek PPC marketing services tailored to law firms, don’t hesitate to contact us.