AdWords is now Google Ads. Our new name reflects the full range of advertising options we offer across Search, Display, YouTube, and more. Learn more

Ads
1.9K members online now
1.9K members online now
Get started with Google Ads - learn the basics to get set up for success
Guide Me
star_border
Reply

Very first budget

[ Edited ]
Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Hi Everyone,

 

I am new to AdWords. I would like to know what would be the best start up budget for a small business? I understand all the qualifying questions such as how much they spend already online and/or in print. There are business out there who don't want you know what their budget is or they might just tell you half truth. Smiley Happy

 

Would love to recieve some help without 'it depends' scenarios. Man Happy

 

Many thanks.

 

RC

3 Expert replyverified_user
2 ACCEPTED SOLUTIONS

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Theresa_Zook (Rising Star)
September 2015

Re: Very first budget

Top Contributor
# 2
Top Contributor

Hello, and welcome to the community.

 

I'm afraid that if "it depends" is out of the question, your question will stay unanswered for quite some time Smiley Happy.

 

Just as it is the "what is the average CTR on Search or Display". There is no answer to that either, unless someone very high at Google can perform a query on the whole database, of all advertisers, and say: "it's 2.53% on Search and 0.12% on Display, wordlwide, during the last 365 days".

 

There are too many variables. Account size, number of keywords, how competitive they are, how wide is the area they serve, etc.

 

If a click costs 0.50 EUR now, and you could get 10.000 impressions per day for that keyword, it depends on the position you may achieve. If you can get to #1, maybe you get 25% CTR and that's 2500 clicks for that keyword alone. Times 0.50 EUR, 1250 EUR per day, per keyword.

 

If the click costs 0.10 EUR, and that keyword can get 100 impressions a day and you only achieve #P4, and your CTR is 4%, you'll get 4 clicks, and spend 0.40 EUR.

 

Multiply by the number of keywords you plan to use, try to estimate the CPC, the CTR and the daily impressions, and ... there you are Smiley Happy.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author razzc
September 2015

Re: Very first budget

[ Edited ]
Top Contributor
# 4
Top Contributor

Hello. Yep, that's exactly how it goes. You can use data from there as a "rough estimation", but "your mileage may vary" is something that will come to mind quite often along the way.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by Theresa_Zook (Rising Star)
September 2015

Re: Very first budget

Top Contributor
# 2
Top Contributor

Hello, and welcome to the community.

 

I'm afraid that if "it depends" is out of the question, your question will stay unanswered for quite some time Smiley Happy.

 

Just as it is the "what is the average CTR on Search or Display". There is no answer to that either, unless someone very high at Google can perform a query on the whole database, of all advertisers, and say: "it's 2.53% on Search and 0.12% on Display, wordlwide, during the last 365 days".

 

There are too many variables. Account size, number of keywords, how competitive they are, how wide is the area they serve, etc.

 

If a click costs 0.50 EUR now, and you could get 10.000 impressions per day for that keyword, it depends on the position you may achieve. If you can get to #1, maybe you get 25% CTR and that's 2500 clicks for that keyword alone. Times 0.50 EUR, 1250 EUR per day, per keyword.

 

If the click costs 0.10 EUR, and that keyword can get 100 impressions a day and you only achieve #P4, and your CTR is 4%, you'll get 4 clicks, and spend 0.40 EUR.

 

Multiply by the number of keywords you plan to use, try to estimate the CPC, the CTR and the daily impressions, and ... there you are Smiley Happy.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Very first budget

Follower ✭ ✭ ☆
# 3
Follower ✭ ✭ ☆

Thanks AdWiser. I really appreciate the effort. Smiley Happy

 

As I am starting up, I am only going for small suburban clients as you can understand. Therefore, small budget businesses and I too don't want to go for an 'over-kill' myself.

 

How seriously would someone take the data generated by the Keywords Tool and Traffic Estimator is something I am not sure. Would it be fair to say that use them just as a "Guide" and reality comes in picture once you run the actual campaigns?

 

Thanks again.

 

RC

Marked as Best Answer.
Solution
Accepted by topic author razzc
September 2015

Re: Very first budget

[ Edited ]
Top Contributor
# 4
Top Contributor

Hello. Yep, that's exactly how it goes. You can use data from there as a "rough estimation", but "your mileage may vary" is something that will come to mind quite often along the way.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: Very first budget

Follower ✭ ✭ ☆
# 5
Follower ✭ ✭ ☆

Thanks Calin.

 

Cheers.

 

Smiley Happy

Re: Very first budget

Top Contributor
# 6
Top Contributor

Hi razzc,

 

My recommendation is always the same and it's very simple: do not budget more than you are willing to lose, do not bid more than you are willing to pay. Watch the results and adjust the campaign accordingly.

 

Best of Luck!

 

Pete

petebardo -- Deadhead doing AdWords

Re: Very first budget

Rising Star
# 7
Rising Star

I would also caution you that the traffic estimates in the AdWords tools are quoting traffic for very large geographic regions. (For instance, the default "local" numbers are for the country you're in. The grain of salt you need to use for those traffic estimates should be a very large one. Smiley Happy  What you actually see in your campaign could be much lower volumes.

 

I think you'd be much better off figuring out the kinds of searches people would use if they were searching for your product/business and using those (restrictive--Phrase or Exact match) keyword variations in your campaign. If people actually do search that way, you'll see traffic. If they don't, you can try other phrases. 

 

I mean, I get that you want to know what keywords will produce the most traffic, but I think it's much more important to focus on generating good traffic than just lots of traffic. Smiley Happy (When you're trying to decide whether or not you'd have fun playing soccer, you don't do it by reading a book about the history of soccer. You go out and play it, right?) Start with, as I said, Exact or (maybe) Phrase match keywords for the searches you think are the ones most likely to be used by people with intent to purchase. Expand from there. Use the keyword tools only as a way to help you brainstorm new keyword possibilities--not as the foundation for your keyword list.

 

Just my $0.02!


Theresa
Google AdWords Top Contributor
*~*~*~*~*~*~*~*

Re: Very first budget

Follower ✭ ✭ ☆
# 8
Follower ✭ ✭ ☆

Hey Pete. 10/10 bro. Well put.

Re: Very first budget

Follower ✭ ✭ ☆
# 9
Follower ✭ ✭ ☆

Thank you so much for the thoroughness. Love the idea of good traffic vs a lot of traffic !

 

Thanks again.