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What Is The Minimum Budget For Google Ads?

What Is The Minimum Budget For Google Ads?
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You have a non-technical client who has no idea of Google Ads. He just needs sales. Who doesn't? He asks you, what budget do you require to run my ads? What is the minimum budget you use and how to explain to him the future roadmap with that budget? Great question, and I have answered this previously as well because this is one of the most asked questions.

How much budget do I need to get going or get started with Google Ads? It all depends on the cost per click. If your click is a dollar, then you need less money compared to if your click is $50. Right? So you need to first decide, okay, how many clicks do you want per day onto your website or landing page?

Then you multiply that by the average cost per click and that will give you the daily budget and the monthly budget. But what we also do is we tell the client, okay, how quickly you want to test or grow your account because if there's no data in the account, we need to test. Now, if you are running at $10 a day compared to $100 a day, you are going to get the data ten times slower than what you would get if you were spending more per day.

So you have a testing budget, first of all, and you educate the clients so that you manage their expectations. Oh, yeah, but I wasted so much money. No, it's not about wasting. If there's no data in the account you've got to test, there's no other way around it. So if they are not happy with the testing, then you don't want to take on that client because you are setting yourself up for failure.

Secondly, you manage their expectations and tell them, look, first 20 days we are going to test. Then the next 20 days or so, we will be optimizing. And the optimization is always on an ongoing basis. And then after 40, 50, 60 days, we should have the account optimized to where we want to be, the ROAS, order, ROI.

Which we are looking to get. So that is all about managing the expectation. The best way to do this is something like this. You create a mind map or a graphic like this, where you say, this is Google Ads, this is Facebook Ads. This is where we are driving. The traffic is going to cost us so much.

And if you work out what your offer is, your order page, conversion rate, everything is worked out from here. And then we can see whether our funnel is going to be profitable or not at the conversion rate which we are shooting for or aiming for. And then you can say, okay, I'm on step one, my metrics are Okay.

Or, The KPI is as per what our projection is. Step two is fine. Step three, where the problem is we are not getting that conversion rate. And then you don't need to change anything else except optimize this or change a few things around, move the buttons, or change the colours of the buttons or the headline or the call to action, or whatever you want to do to start optimizing and split testing over here where the leakage is in the funnel.

And that's how you would do that.

Before launching into a Google Ads campaign, mind-map how much money you have to spend, why you are spending your money, what results you’d like to achieve and the processes included in getting to the desired outcome. 

You also need to incorporate beyond-your-campaign considerations, such as whether you have the capacity to fulfil what the customer wants if the campaign is a success.

Mind-Mapping

While that sounds like a lot of hard work, mind mapping is the process of visualising your campaign, which you can do by creating an online graphic that you can edit and revise as your campaign develops and evolves.

Through a series of circles, squares, and text bubbles, plot the roadmap of your Google Ads initiative. Brainstorm the best keywords you are bidding on, the cost per click you can afford, performance data and what modifications are required to assist your campaign’s success.

Cost Per Click 

Low-budget campaigns can do well. The brainstorming process you’ve had in the lead-up to your campaign will hopefully have helped you hone in on some specific keywords. If you are specific, your selected keywords can still attract the engagement of a potential customer.  

The alternative is spending a lot of money bidding on many keywords that result in click traffic that won’t give you any return on your investment. By skipping the think time, your budget, at whatever level, may not yield any results because the keywords you’ve bid on are not appropriate or you’ve cast your keyword net too wide. But by selecting the keywords relevant to your goods or services, you’ll hopefully get results on a smaller budget.

Budget Size

Drilling down on the right keyword is one way that will reduce your budget spend, as will your pre-determined marketing budget, which could be $5 a day, for example. If that’s how much you can afford, be disciplined and stick to the budget.

Start small, keep the costs per click low, and see how the Google Ads is progressing. If there is no engagement, go back to your mind-map drawing board, revise the campaign, optimise it, select a new keyword and be pragmatic. This way, you can manage your expectations as much as your marketing budget.

Uzair Kharawala

Written by Uzair Kharawala

Founder of SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.

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