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New campaign Investment

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# 1
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How much would you recommend to invest in a new Google AdWords Campaign.

2 Expert replyverified_user

New campaign Investment

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# 2
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This is going to vary by vertical market and advertiser.  "Average cost per click" (CPC) is an important number, but it is dependent upon the individual advertiser/campaign's quality scores and the region targeted, season, etc.  Once you have a campaign running and thereby know the average CPC, then you can make some calculations. 

 

If the average CPC is $2 then a $20 daily ad spend would give you 10 clicks a day, or 300 clicks a month. At a 5% conversion rate that is 15 conversions a month or one about every two days. 

 

That is one way of thinking about how to set a campaign budget (daily ad spend limit). 

 

New campaign Investment

Rising Star
# 3
Rising Star

Hi Karen,

 

Steve's response is good. Here is a link to what Google says about campaign budgets: https://support.google.com/adwords/answer/6385083

 

Best,

 

John

 

New campaign Investment

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# 4
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Hi @Karen O

 

I wanted to emphasize that what Steve says about having a budget for 10x the average CPC is actually more than a good idea - it actually is the turning point where Google first takes you serious as an AdWords advertiser. When you spend 20x or 30x of the average CPC then you will be given the opportunity to show your ads more often because at the end of the day google wants to generate revenues. Being able to afford more than a few clicks means that you won't max out your daily budget too quickly.

 

That said, your budget should be based on an internal system backed by your finances and personal  business goal needs: how much budget can you afford? The more the better at the start to get enough data to optimize your account effectively.


Let me know if that helps!
Nick

New campaign Investment

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# 5
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@Nick C

I dont think Google have that approach, "invest more and I will love you more" or Google will take someone more serious when spending more. Its against their far play policy or in other words, "dont be evil". Everyone have the same change no matter how much one will invest. 

 

@Steve B

Average calculations can work but mostly they dont. Imagine situation. Daily demand for something lets say "brown chocolate" in one particular location is 10 000 clicks during 24 hours and lets say, we have 10 advertisers for that particular thing competing each other for positions. If 1 CPC in that competion war will be 1 USD, and one of the competitor have only 20 USD per day, he can get 20 clicks.

 

But those clicks are real people. One can be lucky and get 20 customers from those 20 clicks, and onother may not get any customers during whole month. So average calculations cannot work, because we dont know when that real customer will come. What if, in those 10 000 click (people) are only 100 real customers in any given day.

 

The point is, ad must be visible when real customer is searching. Its like in real world. I can have real business in shopping centre open from 8AM till 8PM and I pay full rent. My competitor will open his store only from 8AM till 9AM. He will pay much less rent. But I will get all his potential customers, because he is closed.

 

When one have little budget, Its very important to setup timetable where is highest possiblities real customers may popup.

Also, very important factor is landing page. Bad page is like bad business.

 

//just my 2 cents Smiley Happy

 

 

Re: New campaign Investment

Rising Star
# 6
Rising Star

@Michal S - Terminology can be confusing. When @Nick C says "Google" in his response, what he's actually saying is, "the Google AdWords software."  As with any automated system, a certain minimum amount of performance is needed in order to get the best results. The AdWords software works best when it has a lot of data to work with--a campaign that has only enough budget to pay for two or three clicks a day is very difficult for the software to provide the best results for.

 

However, you are correct that optimization can make the most of a limited budget. Not only making certain your Ad Groups are small and tightly themed, so that you can write very targeted ads, but the landing pages an advertiser uses for the campaign can make the most of what traffic they do receive.


Theresa
Google AdWords Top Contributor
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