The first thing to understand in order to know how much to advertise on Google ads is how the algorithm works. Positioning in Google ads will depend on the following factors when positioning keywords:
- The bid (bet in $) that you define for each keyword that you want to position
- If the search for the keyword matches what you offer (advertisement and web)
- The quality of the ads and the results (high rate of CTR and retention of users on your website after clicking, among other elements)
Explore the market for [key]words
The simplest way to learn about the market and which is the estimated top investment is to do it through the Google Keyword Planner.
If you already know which are the keywords that you want to cover, you have to type them into the keyword planner. Then check the search volumes and how much the average click of these words costs. With this tool, you will be able to project on average how many clicks you will get according to different bids and budgets.
Budgeting is also important when it comes to learning how much to advertise in Google ads. You need to start a campaign with a low daily amount (you can start with USD $1) and in a few days, Google will let you know if you can increase the daily budget.
Normally when the campaign takes a few days, Google will highlight the campaign with a red sentence that says “Limited by budget”. If you click on it, Google will tell you how much more you can invest and what estimated results you will get.
You can also add a column with information about how much your ads are showing up. For this you must go to the button “columns> modify columns”, from there you select “values of the competition> percentage of search impression”.
This new column will give you the percentage of the volume from the times that you appear on all searches made for that keyword or campaign. If you have 50% you will know that you can invest up to 50% more (same results).
We recommend using one of the best keyword tools in the market, the Synapse Ads Keyword Mixer. This tool will help you optimize your content accordingly just like the Google Keyword Planner. It is a great tool for businesses who are looking to obtain professional results to improve their SEO.
How much to spend per goals
The Google notice “Limited by budget” will help you know how much more you can invest to obtain the same unit results (CTR, CPC, cost per conversion).
The investment can vary significantly according to the objectives that are defined for the Google ads campaign. When you create the campaign is important to define the goals of the bid (and create custom goals):
Manual Bid: Determine how much CPC to bid for each keyword.
Improved CPC: Define the manual bid but allow Google to lower or raise the bid to certain ranges (30% by default).
Maximize clicks: Google will search for the best cpc bid so that you can get the most clicks.
CPA Objective: Define a fixed amount to achieve your objectives. For example, the cost of selling the product that is being advertised. To use this you need to track the conversions of your clients with the Google ads pixel.
Location of the search page: Here you indicate that you bid the amount necessary to be in the desired position. Also, once you have a historical behavior you can “prioritize conversions”, that is, the bid will change according to whether Google estimates that the search will likely be a conversion.
Our final recommendation on how much to advertise on Google ads:
- Know your market with the Keyword Mixer.
- Start a high-quality campaign with a low investment amount.
- Review the results and modify bids according to the position and estimated bid columns for the first place.
- Check if Google warns if the campaign is “limited by budget” and increase the investment in Google Ads as indicated by the existing potential
Remember to pass by our Synapse Ads blog and learn more about this and other topics that are directly or indirectly related. You can also discover the positive aspects that our Keyword Mixer has to offer.