One of the advantages of creating campaigns on Google is that it allows us to manage the budget to invest in each one, but it is important to learn how to make profitable campaigns that give the results we expect. Therefore, it is very normal to ask ourselves: How much should we invest in Google Ads ?
The amount we invest in campaigns does not guarantee success, since it is essential that there is a demand for our product or service. However, making a very low investment may result in our ads being seen by very few people, making it difficult to attract those who are really interested or leads, and we must seek to maximize performance to achieve efficiency.
However, a very high investment without having a clear idea of our audience and having carried out a prior analysis would be ineffective. Like almost everything we do, it is about maintaining balance and measuring and studying our strategies and their results.
How to measure our investment in Google Ads?
The ultimate goal will always be to maximize our investment and achieve the greatest possible profit.
Before defining our investment, we must be clear about our objectives and how we are going to achieve the income we set for ourselves.
Google Ads provides us with many tools and we can define what the CPC is for each keyword we plan to use and it will give us a first approximation of what our investment and its performance might be.
To start, it is always advisable to begin campaigns with a smaller budget than the one we will use in the long term because this way we can, first of all, test and analyse the results obtained with the campaign and have an idea of the costs and profitability, as well as the points to improve.
After all, we must not forget that several factors intervene in the performance of our campaign and that this will not be a linear process, so we must test and adjust.
And like any investment, you always have to take a risk, even if it is a conservative and safe investment, so to speak.
Once we have run the first tests and understand how the campaign works, that it performs as expected and can be optimized, we can take a few more risks and increase the campaign budget.
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Does a bigger budget mean better performance?
The answer is undoubtedly NO. As we have explained, the campaign will not be effective just by increasing the budget, since there are multiple factors involved that must be taken into consideration and one of them is the quality and relevance of the ads that we show to impact our audience.
It is therefore essential to refer to the quality score and how it affects our ads and their position in search results. As Google explains, higher quality translates into better ranking for our ads.
Ad Rank is determined each time a user performs a search that triggers an ad competing in an auction. This calculation includes bid and expected CTR measurements at the time of the auction, ad relevance, and landing page experience, among other factors.
Our position improves with the quality of the ad and, in addition, our actual CPC decreases, reducing our costs. In short, higher quality ads usually have a lower cost, improve their position and achieve better advertising results.
This tutorial will help you properly structure your Google Ads account:
After all this, we can conclude that higher quality and better optimization will lead to better performance of our campaign, achieving better results without the need to invest much more. For this reason, we affirm that the amount we set is important, but it is also important to work carefully on our campaign to make it as profitable as possible with the budget we have.
Of course, it will be impossible for us to compete with quality alone against other advertisers with a larger budget, so it is also necessary to understand how our competition behaves and analyze their strategies. Although it is impossible to decipher how much others are investing, Google Ads provides us with tools to understand the performance of our ads compared to those of our competitors, which can also give us a reference as to whether our budget is sufficient or we need to adjust it.
Google provides tools that will tell us if our budget has fallen short and will mark our campaign as “limited by budget”. This means that our ads are not being shown as many times as they could be because our budget is not sufficient, which indicates that there is more demand for our ads than the supply we can meet.
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Some tips for investing in Google Ads
In summary, when investing in Google Ads it is important that you take the following into consideration:
1️⃣ It is always better to start with a smaller budget than we can spend, and increase it little by little.
2️⃣ Changes are not immediate: allow time for changes to have an impact. Campaigns in the learning phase can take time to work correctly, so we have to allow time for changes.
3️⃣ Pay attention to the quality of your ads, as this can make your investment more profitable.
4️⃣ Optimize everything we can as much as possible and test, in order to achieve better results.
5️⃣ Pay attention to our metrics and direct our efforts towards what is working well, to maximize our benefits.
6️⃣ Know your business, your costs, your advantages, your limitations, your objectives and your competitors.
7️⃣ Learn...practice and adjust, there is nothing more effective than preparing and applying knowledge and experiences that will strengthen you and you will be increasingly more effective in your campaigns.
8️⃣ If, on the other hand, you don't have the time or don't want to get into this world, seek support from experts, they can make your investment in Ads much more profitable, raising your conversion rate and significantly reducing your CPC and CPA.
Using Google Ads can take your business to the next level, through defined strategies targeted at specific consumers of the products and services you offer.
The key is to prepare and practice!
You can start your Google Ads campaigns today
Courses that may interest you
Do you want to acquire more skills to dominate the world of digital marketing? We remind you to also check out our Facebook Ads courses: Advanced Strategies and Digital Marketing Diploma.
