This question that we hear so many times in our Studio has, I think, one of the most accurate answers among all the existing ones. That answer is…as much as necessary!
Stay a few seconds reading and learn some interesting tricks when it comes to knowing how to invest efficiently in Google Ads.
The investment in Google Ads will change depending on several factors such as:
As you can see, it is difficult to answer this investment question. Therefore, when we receive a query from a client in our Studio, the first thing we do is an assessment of the product, market and client strategy. After having done this analysis, and having played a bit with the Google Ads keyword planner, we can have a rough idea to start talking about investments and campaigns.
One of the tools we have available, free of charge, is Google Ads Keyword planning. It is also the option I personally recommend using.
This tool allows us to simulate a specific campaign, with its keywords, location and bid strategy (among many other things). The simulation offers key Kpis to get an approximate idea of the results, including the one that matters to us in this blog post, the monthly cost of the campaign.
Below we can see a Studio Ideago simulation example for a client done in Goole Ads Keyword Planner.
Another tool (in this case paid) that we can use, but we are already heading to a more professional field, is Semrush, this platform gives us many insights about keywords, values and estimated positioning. It is very common among marketing experts, especially if they work with data and analyze the competition. With these data we can also have an estimate of how much we should invest.
Another important aspect when investing in Google Ads is to be aware of the value of my product/service. In other words, if I sell massive products like pens, which can be worth €1, then with little investment I can already sell some product.
In the other hand, if I sell a luxury product, such as watches, which are worth €1000 the cheapest, we cannot expect to invest the same as someone who sells pens for € 1 euro. This is what I mean by always using common sense when it comes to knowing how much we should invest to sell x amounts and have a certain ROI. The investment is directly linked to the price and popularity of your product/service.
So do not expect to have an initial investment of €50 and received €2500 because this game is not that easy.
Always remember when you calculate your investment in Google Ads, to add an extra line there for the professional. That is, who will be in charge of managing and optimizing your campaigns. There are freelance to large marketing agencies that can this for you. Their budgets can range from a few hundred euros to thousands euros per month depending on the challenge and the investment you want to make.
Now you know, there is no quick or easy answer to How much money should I spend on Google Ads? But you have tools and ways to carry out a study to have an approximate. You can always start with a low budget and test.
Remember, the market is changing, so you should always check your Google Ads strategies and campaigns to verify that you are doing things properly.
At Estudio Ideago we have more than 10 years of experience advising companies in the field of Google Ads, you can contact us here, or complete the form below and we will contact you shortly.
Deep passion for technology, development and businesses. More than 12 years working in different marketing departments around the world. A true believer that constant education and dedication are the key to achieve what you want.
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