What Should Your Google Ads Budget Be?

Google receives about 70,000 searches a second. That means, in just the few moments it’s taken you to read these 20 words, hundreds of thousands of internet users have pressed “enter” on their keyboards and are scrolling through the search engine results page.

Even if your website isn’t in the top ten search results, you can still appear high on search rankings by using Google Ads. Combine your well-thought-out business strategies with the right ad budget and you can gain some serious traction for your company.

But what amount is the right amount to spend on Google Ads? It depends. While the end budget will vary from company to company, every business should consider the following factors when determining how much to spend on Google Ads.


If you’re new to Google Ads, it’s best to start small. Anywhere from $10 to $50 a day is a good place to start, but $500 a month is when you’ll be able to notice that ads are making an impact.

$1000 is what we like to call the magic number – you’ll start to see higher clicks, conversions, and leads. If you’re a one-person operation, you may want to begin with less. If you’re in the process of expanding your 12-person facility into a 50-person one, your number could be different.

Don’t let a lack of experience with Google Ads make you think that you’re obligated to start with a budget of $1 or $2 a day. It’s better to jump in with at least a few hundred dollars a month so that you can make adjustments to your ad strategy as soon as possible.

Cost-Per-Click Limit

When you’re paying for Google Ads, one data point you’ll have access to is your cost-per-click. This is the amount you have spent on a user who has clicked on your advertisement.

How much are you willing to spend for one click? 20 cents? $3? Some companies in some of the most competitive industries may be willing to spend $50 per click or even per view, but the average is about $1 to $2.

And keep in mind that a click doesn’t always guarantee a new lead, so you’ll have to factor that into your budget. Would you rather set your maximum cost-per-click to a higher amount that will target better customer matches? Or would you rather go with the approach of a lower cost that may reach more people?

Google Analytics

Google Ads will tell you how many clicks or impressions your ad has received, but it won’t give you specific information on the number of conversions from those ads. And if you don’t know what your returns are, it will be difficult for you to set an effective budget.

To get insight into the actions that customers take on your website, link your Google Ads account to your Google Analytics one. You’ll have access to a host of helpful information, like the amount of time visitors are spending on your website after they click your ad or the number of purchases they end up making.

Having this information can help you to see if your keywords are effective or if you need to adapt your advertising strategy.


Your location plays a role in determining your ad budget because you have to decide the size of the population you are trying to reach. If you’re a small pizza restaurant located on Ocean Drive, you could use your ads to target Ocean Drive searches, Miami Beach searches, Miami searches, Florida searches, and even U.S. searches for pizza places.

But an ad appearing for a U.S. pizza search won’t be nearly as effective for lead generation as one that’s set to Miami Beach. That’s because people who are looking for a pizza restaurant within your city are most likely close enough to visit.

Edit your ad settings so you’re only showing ads to people close by. You’ll be spending your budget more efficiently, and you might even end up changing it. It may be cheaper to advertise locally since a more specific keyword isn’t as competitive.

Campaigns for Google Ads

Another factor to consider for your budget is the number of campaigns you’ll run. Instead of creating a one-size-fits-all ad, it’s best to create different ad campaigns that send viewers to different pages of your website.

For instance, say you’re an office supply company creating campaigns for the month of August. Instead of making one campaign that sends all advertisement clickers to your home page, create multiple ones for different audiences.

You can create a back-to-school campaign that takes visitors to a page on your website selling school supplies. Another campaign could be one directed at teachers who need a one-stop way to purchase all of the items for their classrooms.

You could even appeal to executives looking for new office gear by sending them to a custom order form for items such as calendars, pens, and stationery.

Consider how many campaigns you’re willing to fund. If that number is significantly less than all of the categories of products you offer, do some research into what pages of your website you’re going to target that will be most likely to generate new customers.

Begin With an Ads Manager

Want that $500 a month to even further? Begin your Google Ads campaigns with a Google Ads manager. With our expert help, you’ll see clicks turn into conversions much more quickly.

No matter the size of your business, setting a budget for a Google Ads campaign is the right move. Any amount you spend is a step in the right direction toward a more digitally savvy company.

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