How Much Should We Spend on Google AdWords?

How Much Should We Spend on Google AdWords?

How Much Should We Spend on Google AdWords?


Smart business owners understand that people reach out to their devices whenever they want to get some information, have a doubt, or want to buy something. This behaviour enables them to tap into their target audience easily. The trick is to know how much they should spend on Google AdWords to effectively reach their target audience and establish a successful connection with them.

Variable Factors

When you spend on Ads, you will be spending on small-sized markets within Google Ads. The keywords you target will have a set of prices and reasons to consider. Likewise, when you bid for website visitors or clicks in Google, you bid on the clicks that fit you and your competitors.

As Google Ads is a keywords auction website, the cost of the keywords on which you wish to bid will determine your rough budget. Suppose the keyword on which you want to bid is popular and a lot of marketers are bidding high on it, then the bid for this particular keyword will increase than others. This scenario will increase your budget. It would be best if you remember, this is a dynamic process, and it will differ for various industries.

Suggested Budget for Google AdWords

While using Google Ads, there is no minimum spend but getting desired results from a small daily budget such as £5 is completely impractical. Many marketers first think of checking results with a small budget, and if they get favourable results, they think of increasing it. The flaw with this approach is that Google AdWords does not yield results like this. Since AdWords’ pricing is auction-based, the higher the value of bids is, the better results you will get.

Our team suggests a starting budget of £1,000 to £10,000 per month. This will, of course, depend on the client, goals, targeted locations, and industry. A knowledgeable team member or an expert must create and optimises your Google Ads campaigns because then you can set a higher starting budget which could get better results.

If you have experience with AdWords, you can think about setting a higher budget. If your business is new and you have no experience with Google Ads, you should start with a low budget while staying competitive.

Setting the Budget

You might be confused about setting the budget. Should you put a small amount and see how it performs over the year or should you put a big amount and divide it in a period? The answer is simple – if you set a budget, say £1200 per month, and do not increase it, you might see fewer results after spending £14,400 in a year. If you divide that £14,400 in a quarter, which is £4,800 per month, you would notice the following:

  • You will be highly competitive with other marketers.
  • You will be able to assess in a shorter period if this method is delivering the desired results or not.

Some industries have keywords with expensive cost-per-clicks that can cost between £30-£50. You will have to see how your industry is performing and what are the costs that can get you expected results. The most important thing here is to set up your campaign correctly and keep optimising it whenever necessary.

Estimating Cost Per Click

If your CPC costs and budgets depend on upper-funnel keywords, this could be an issue for your campaign. At the top of the funnel, the buyers are just looking for some information, and they are not considering to buy the item. When you move down the tunnel, you move closer to the buyer’s purchase intent.

The keywords that would attract new customers will be costlier than regular keywords. Suppose, you are a company that sells stationery then targeting a keyword like ‘pen’ would not be wise. Choose specific keywords that buyers would use when they are ready to buy, such as ‘waterproof blue roller pen’ or ‘black gel pen with refill’.

These keywords are competitive and high in demand; hence they are high-priced. When keywords are popular, they have a better ROI. A buyer who wants to purchase a pen would use specific keywords like ‘waterproof blue roller pen’ and not just ‘pen’.

Google AdWords offers your business recognition and traffic and creates demand. When working with AdWords, you need to remember the following:

  • Keep optimising your campaign.
  • Your Google Ads’ budget depends on your industry.
  • The necessary budget varies in different industries.
  • Use the right keywords when you are calculating your costs.

If you are looking for expert services in setting up your Google AdWords campaign, we would love to get in touch with you and guide you throughout the process. Let us know how can we be of assistance and help you in growing your business.


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