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
1.7K members online now
1.7K members online now
Get started with Google Ads - learn the basics to get set up for success
Guide Me
star_border
Reply

budget and conversion

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

           Most of the time a question often asked by a client that he has xyz.com website for e.g. How much i will have to pay daily for conversions and how much conversions i will get on it. My question is that how to calculate client's daily budget and conversion idea after going through his website...

1 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Dave_Davis (Top Contributor)
November 2015

Re: budget and conversion

Top Contributor
# 4
Top Contributor
Hi Vijay
Again, that's something only you can answer. There's no set formula that gives an answer for every advertiser.

For example, your clients competitor might offer a free item that gets lots of clicks for 100 dollars and converts an upsell and makes 5000 dollars profit. Whereas your client might be bidding in the same keywords, have the price in the ad, and convert one sale of 100 on a lower ticket item. There's simply no way one size fits all answer and if you don't understand this, I'd be very concerned.

You can of course estimate clicks using the keyword tool but it's just an estimate. Ultimately, you'll just have to jump in and spend some money to get the data yourself. I'd be extremely cautious about this approach though. I seriously cannot understate this enough that you should read and understand AdWords first. Especially if you are charging someone for the privilege of managing their account.

Again, using my example above, Vijay, please tell me how many sales that I can expect if I run a superbowl ad on TV or if I run a billboard ad during the Rio Olympics. See what I'm getting at? You can use the tool to estimate impression volume but your INDIVIDUAL ads and how well you write them will determine your clicks. How good your offer is, how well designed and usable your website is as well as your conversion rate and bank end profit process is will determine the sales. It's different for EVERY SINGLE ADVERTISER using AdWords.

Sorry I cannot give you the answer that you're looking for. Unfortunately, the answer simply doesn't exist outside of the data that only you and your client have Smiley Happy

View solution in original post

Re: budget and conversion

Top Contributor
# 2
Top Contributor
Hi Vijay
Unfortunately, there's absolutely no way to answer this for you. It's something you need to decide for yourself and your client based on MANY different variables.

Ultimately though, it comes down to the basics. Spend as much as you can as long as you're making a profit. That profit can be in the front end, upsells or on the back end taking lifetime value into account.

You shouldn't just be using AdWords because everyone else is. You should be using it as a tool to enable your business, not as a tool that defines your business.

Your question is like me asking you, how much should MY client spend on a superbowl TV ad? Can you answer that? It's going to be different for everybody and the fact that you're even asking suggests to me that it might be a good idea to sit down and review exactly what you're using AdWords for and what your goals are. It's a fantastic tool, but it only works of you understand it.

Hope that helps somewhat.

Re: budget and conversion

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hi Dave
Thanks for your interest but mostly i face such question when client says i have $ 100 daily budget how much leads or clicks you can generate for me in this budget ?????
Marked as Best Answer.
Solution
Accepted by Dave_Davis (Top Contributor)
November 2015

Re: budget and conversion

Top Contributor
# 4
Top Contributor
Hi Vijay
Again, that's something only you can answer. There's no set formula that gives an answer for every advertiser.

For example, your clients competitor might offer a free item that gets lots of clicks for 100 dollars and converts an upsell and makes 5000 dollars profit. Whereas your client might be bidding in the same keywords, have the price in the ad, and convert one sale of 100 on a lower ticket item. There's simply no way one size fits all answer and if you don't understand this, I'd be very concerned.

You can of course estimate clicks using the keyword tool but it's just an estimate. Ultimately, you'll just have to jump in and spend some money to get the data yourself. I'd be extremely cautious about this approach though. I seriously cannot understate this enough that you should read and understand AdWords first. Especially if you are charging someone for the privilege of managing their account.

Again, using my example above, Vijay, please tell me how many sales that I can expect if I run a superbowl ad on TV or if I run a billboard ad during the Rio Olympics. See what I'm getting at? You can use the tool to estimate impression volume but your INDIVIDUAL ads and how well you write them will determine your clicks. How good your offer is, how well designed and usable your website is as well as your conversion rate and bank end profit process is will determine the sales. It's different for EVERY SINGLE ADVERTISER using AdWords.

Sorry I cannot give you the answer that you're looking for. Unfortunately, the answer simply doesn't exist outside of the data that only you and your client have Smiley Happy

Re: budget and conversion

Top Contributor
# 5
Top Contributor
I see you also asked a similar question for a tech support business 2 years ago. The answer hasn't changed Smiley Happy

Re: budget and conversion

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Hi Dave
Thanks for your reply i got your point.....

Re: budget and conversion

Top Contributor
# 7
Top Contributor
You're welcome. Let me know if you have any more questions.