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You are here: Home / BUSINESS / How Much Should You Spend on Google Ads to Get an ROI?

How Much Should You Spend on Google Ads to Get an ROI?

8 August 2022 by Australian Women Online

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Photo by PhotoMIX Company: https://www.pexels.com/photo/black-samsung-tablet-display-google-browser-on-screen-218717/

In the world of marketing, running a Google Ads campaign is one of the best ways to boost your business. Working with a digital marketing agency that manages Google Ads Brisbane, you’ll be able to set up campaigns that offer real value for money.

Even a small budget is enough to set up paid ads that reach new customers. But setting your budget is a challenge, and smaller isn’t always better. It might sound daunting to spend big money on your Google Ads. However, it’s a platform that’s highly scalable, and increasing your budget is one of the best ways to strengthen your Return on Investment (ROI). In this article we’ll discuss what goes into developing your Google Ads campaigns and how much you should be spending on paid ads.

How Google Ads Works

Let’s start with a quick lesson on how Google Ads works. Every time someone types in a search query, Google sells ad space amongst the search results. That ad space is filled by Google’s automatic bidding system. In a lightning moment, Google’s supercomputers run an auction, and businesses bid to be shown in that ad space.

Your budget isn’t the only determining factor in winning a Google auction. The quality of your ads and how relevant they are to the searcher are also very important. But, if you don’t have the budget to compete, your ads will be shown to fewer people. That can mean you don’t see much ROI from low budget campaigns, especially if you’re competing for popular or expensive search terms.

Designing Your Google Ads Campaign

The Google Ads system can be complex, so it’s important to design a campaign that makes the most of your budget and maximises your ROI. The right campaign depends on your business, industry, customers, products and dozens of other factors. It’s usually a good idea to let a professional agency handle your campaign to ensure you’re getting the best results.

Whether you manage the campaign yourself or pay for professional help, you’ll need to lay solid groundwork by:

  • Setting a strategy. You need to work out what your business wants to achieve and how it can get there. Certain types of Google Ads will work better in some situations, so this is important information for getting started.
  • Deciding how to reach your customers. Google Ads can display ads all over the internet. You just need to figure out where the best places are to connect with the customers you want.
  • Determining key metrics. No two businesses need the same things. Some companies need website traffic, others want e-commerce sales, and some just need customers to pick up the phone and call. Determining the best way to measure the results of your Google Ads campaign is the key to figuring out whether your ROI justifies the spend.

How Much Should You Spend on Google Ads?

This is the big question, and there’s no perfect answer. As a guide, a small business could expect to spend between $3,000 and $5,000 per month on Google Ads.

If that number sounds daunting then remember that Google Ads gives back what you put in. If your digital marketing agency designs a good campaign, spending more per month could increase your ROI significantly. Spending more means you appear in more searches, and every time your ads are viewed that’s another chance at making a sale. Low budget campaigns often suffer from a lack of visibility that simply isn’t an issue if you’re willing to spend a bit more.

The real challenge with Google Ads is striking a balance. You could spend $5,000 a month, or you could spend that much money in a day if you wanted to. You don’t want to overspend and find yourself turning away new business. But you also don’t want to pinch pennies and make it hard for your Google Ads campaigns to deliver results. Your digital agency can help you set an appropriate budget that delivers the ROI you need without overwhelming your business or wasting money.

Generating Better ROI From Google Ads

Google Ads is a powerful tool, but it can only do so much of the work. The final piece of the puzzle is to develop systems that help you make the most of your Google Ads budget.

For example, it’s common to use Google Ads to encourage people to call your physical store. No matter how good your campaign is, it’s your job to close the sale once you’ve gotten the custom on the phone. Work with your employees and the agency managing your Google Ads Brisbane to set up systems that improve your ability to turn new customers into sales. That might include staff straining, building landing pages or performing website SEO. Whatever the case, you need to make sure you’re supporting your Google Ads to get the best ROI possible. If you can nail this part of the process then Google Ads can become a powerful tool for growing any business!

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