Choosing a budget for a marketing campaign is often the subject of a debate, but the fact is that the exact budget you will need cannot be determined before the campaign is launched and tested. Whether or not the Google Ads campaign target is brand awareness, click on the web, product/service sales, it’s important to choose an appropriate budget to match the goals set when launching a campaign.
If an advertiser is not sure which budget to choose, it is recommended to begin with a smaller amount, and after a certain period of testing when campaign performance data is generated, increase and distribute that budget as needed.
How to set a budget?
The budget is set on the campaign level (not for the entire account), on a daily basis. If your daily budget is spent, for example, at noon, your ad will not show up on that day.
How to choose a daily budget?
Distribute Monthly Budget by Days – Monthly Budget / 30 Days. Please note that Google allows spending up to 100% higher than your daily budget. This means that if the daily budget is $ 100, there is a chance that it will be when Google instead of 100 will spend $ 200. But at the end of the month, this amount will not be higher than the amount selected, in this case, $ 100 per day – $ 3,000 per month (counting that month is 30 days). Such a situation is often frustrated by advertisers when they see that they spend twice as much on their day as they have set;
Calculation based on the average click price – The average click price for certain keywords can be obtained using the Google Ads tool. When you get the average cost, multiply by the number of days in a month and you get roughly the amount of your budget. Of course, the average cost of clicks varies and will be lower or higher depending on a few segments such as the quality of the created campaigns, websites, and so on.
Campaign Recommended Campaign Budget by Google Ads – This option appears in existing campaigns that have a limited budget on a daily basis. So, in the situation when Google Ads consumes your daily budget daily, the Google system suggests which budget should be used in order to take full advantage of the campaign’s performance potential;
Ad delivery method – there are two types of ad delivery methods – standard and accelerated. The first one spends the budget evenly throughout the day, while the second option uses the budget much faster. Logically, in the case of a smaller or limited budget, it is recommended to use the standard option to keep the budget as long as possible throughout the day.
The conclusion is that it is very difficult to predict the budget in advance, and it is always well agreed upon by the customer – the service provider to determine the initial budget that will be tailored to the campaign’s capabilities and goals after the campaign testing phase.