How Much Should You Spend On Google Ads For Your Business?
When your business transitions to e-commerce, it’s inevitable that you’d want to capitalize on impactful internet marketing. Practically everyone is on Google and Google adjacent services, so it only makes sense to make use of Google Ads for your business.
However, internet marketing is not the same as traditional marketing. Instead of simply taking out ads whose rates pretty much stay consistent, your business is now at the mercy of a myriad jargon and confusing prices, of keywords and costs per clicks. Because there is no limit to how much you’re supposed to spend on Google Ads, the offerings can be overwhelming and it’s not easy to determine what is most effective for your campaign.
At the same time, it’s not a complete jungle out there. There are ways to crack the seemingly indecipherable code of Google Ads so you can skillfully utilize it to your advantage.
The Right Keywords
Google Ads is a keyword auction marketplace, which means that what you are paying for is the ability to show up as a listing based on the user’s search term algorithms. When users type the keywords that they are looking for on the Google search bar, Google Ads place you and other bidders for that keyword on top or among the other search results. Google bills you a cost-per-click (CPC) price every time users choose your listing. So, to maximize your money’s worth on Google Ads, you need to bid on the right keywords that reach your target market and give you leverage on your objective.
How do we know what the right keywords are? Your keywords should be relevant to your business and at the same time be specific enough to attract potential customers looking for your services. Like most things in business, highly competitive keywords are more expensive because they appeal to a broader pool of potential customers, and keywords that are more likely to convert into sales are more expensive than simply informative ones. Your spending will depend on how competitive your keywords are based on your industry and whether you need them for brand awareness or to convert into actual sales.
As an SME, your Google Ads budget depends on how fast you want your ROI. Of course, this doesn’t mean that you have to throw your entire capital to Google: it only means that you have to be more critical of the keywords you’re investing in. A good way to measure that is to test what keywords work for your target audience and objective.
The Right Budget
Any marketing is an investment and it’s always a balance between financing it to work effectively and not letting it drain your resources. To set the budget for your SEM, try it out with a relatively small test ad first.
Small does not mean choosing measly $1 to $2 keywords to see if they work. In the same way that paying for a TV ad at odd hours can be cheaper but are less effective, testing on unoptimized keywords is just a money drain. Testing your keywords on a smaller scale means going for the low daily budget for your industry: low-risk enough to be non-commital but significant enough to get a measure of your target audience. Once you find the keyword group that’s working for you, you can reexamine your campaign and find out which funnels you want to thrive.
The Right Analysis
The strategy to find the most effective keywords for your campaign can be ever-changing as you tweak your keywords to make sure that your clicks are converting into potential revenue. A non-performing keyword can be a waste of money and time, so constantly improving your results is important to get the full value out of your campaign. At the same time, keywords that bring conversions can be tweaked to get better value for your money and lower your cost-per-action (CPA).
CPA is a metric that measures how much money you’ve spent to attain your goal via Google Ads. This is not entirely dependent on your keywords: your website Quality Score and conversion rate also play a factor in lowering your CPA. Lowering your CPA allows you more savings for better value, so the right combination of high-quality Google keywords, ads and landing pages can impact the budget you place for your Google Ads. Google Analytics Insight helps as well: with an overview of what your bounce rates are and which parts of your website need to be optimized, you are armed with a better understanding of what incentivizes your customers to check out their carts.
The Right Agency
Spending for Search Engine Monetization (SEM) needs to be strategic, capable of delivering results and then optimizing them by evaluating the data you’ve gathered so you can re-position to make it work harder at a better cost. It can be overwhelming to do it yourself, especially when your business needs you to focus on other parts of your company as well. Getting help from experts in SEM is a better investment of your time.
With Google-certified specialists on the team, FirstCom Solutions has found a proven way to increase your Google Ads conversions, with cost-effective strategies that drive results. Our high-performance campaign implementation can help your company achieve high ROI, with the reports and numbers to back it up.