🤔How Much Should I Spend on Google Ads? Don't waste another penny! Find your ideal budget now. 🚀

🤯 Do questions like "Is $50 enough?" or "Is $10,000 enough?" keep you up at night? https://www.39celsius.com/how-much-should-i-spend-on-google-adwords-ppc/

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Stop the guesswork!  In this video, I reveal exactly how much you should spend on Google Ads to achieve your business goals. You will also learn the most critical metrics that help you budget and align your expectations of success with your budget. 

💡 I'll walk you through three proven methods to determine your optimal ad spend:

1️⃣ Budgeting based on your business growth stage:  Learn how to allocate your budget based on whether you're a "cash cow," in "growth mode," or aiming for "rocket growth." 📈

2️⃣ Calculating your budget based on sales goals: Discover how to use conversion data and keyword research to determine the perfect ad spend to hit your revenue targets. 🎯

3️⃣ Benchmarking your budget against your industry:  See how your spending compares to competitors and get insights into industry standards. 📊

🔥 Don't leave money on the table! Watch this video to unlock the secrets to effective Google Ads budgeting and maximize your return on investment. 💰

Read Related post:  How to set up conversion tracking for Google Ads: https://www.39celsius.com/google-ads-conversion-tracking/

📢 And if you need help with your company's digital marketing, connect with me now: 📧 Email: [e-mail] 🌐 Website: https://www.39celsius.com/

Contact us:  32605 Temecula Pkwy, Ste 211 Temecula, CA 92592 📞Phone: [phone]

#googleadsbudget  #googleads #DigitalMarketing #sembudget #Marketing

Episode Transcript

(00:00):
- How much should I spend on Google ads?
I get this question a lot.Is $50 per month enough?
Is 10,000 enough? How much is enough?
How much is too little?
These are all great questionsand there is a correct answer.
So today we're gonnastop all the guesswork
because in this videoI'll break down exactly
how much you should spend on Google Ads

(00:21):
or what your ideal ad spend should be.
I'll cover three differentmethods that you can use
to arrive at an optimalGoogle Ads monthly budget
that makes sense for your situation.
So stick around. This could make
or break your marketing strategy.
But before I get intothe heart of this video,
let me briefly introduce myself.
I'm Toby Danylchuk
with 39 Celsius Web Marketing Consulting,

(00:43):
and I've been activelyinvolved in digital marketing
for over 20 years.
So Google ads budgetshave been a part of my
of all my projects.
If you find this video helpful,
please give me a like on the video
and subscribe to my channel
for more actionabledigital marketing tips.
And if you need help withyour digital marketing
for your business, please contact me

(01:04):
and my team now at 9 5 1 4 4 4 0 1 7 4
or email me at [e-mail].
And don't forget to checkthe video description below
for links related to related posts.
Okay, back to the content.First up is Google ad spend.
Based on the growth you're looking for
for the stage your business is in.
I put businesses into three buckets.
The first bucket is awell established business

(01:27):
that is not looking for growth in sales,
but instead just wants to maintain sales.
We call these businesses cashcows, where the owner wants,
wants to maximize the cash he takes out
of the business whilekeeping sales consistent.
As such, a cash cow businessspends modestly on advertising,
relatively speaking, approximately 5%
or less of sales onadvertising on Google Ads.

(01:49):
Now, Google Ads is often one
of the best returns on investment
of any advertisingtactics that you can do.
If your ad budget is modest,I recommend putting most
of it in Google ads where youwill have the highest return.
For Google Ads, a modest budget
for a small business is lessthan a thousand dollars a
month, which means yoursales are approximately
20,000 or less per month.

(02:10):
The next business type isnot looking to maintain,
but instead looking forgrowth in sales year
over year, month over month.
I refer to these types of businesses
as growth mode businesses.
At this stage, you'reinvesting between five
and 15% of sales into advertising
because you are trading short term profits
for long-term investmentsthat will pay dividends.

(02:32):
Now, for illustrative purposes,
let's assume you have50,000 per month in sales.
Then the range of ad spend
to achieve more aggressive sales growth is
between 2,500 per month.
So 5% of sales up
to 7,500 per month inGoogle ads are 15% of sales.
Finally, the third type of business is
in rocket growth mode.
You're a new businessand want to grow sales

(02:53):
as quickly as possible.
In this mode, you're pouring 20%
or more of your sales inadvertising to capture
as many new sales as possible.
Now, if you're a new business,
basing your advertisingspend on a percentage
of sales doesn't make sensesince your sales are low.
So base this number off youryear end projected monthly
sales as an example.
But for sure what you don'twant to do is just wait

(03:15):
until sales grow enough beforeinvesting in advertising.
If you want to grow fast, you have
to invest in promoting yourcompany through advertising,
which is even more crucialwhen you're a new business.
Here's a short storyto illustrate my point.
A fast casual Italianrestaurant near me had been open
for five years and justrecently closed its stores.
Now who doesn't like pizza and pasta?

(03:36):
Small businesses pour theirheart and soul into the business
and it can be crushingto have to close down.
But this restaurant wasn't inthe best strip mall in terms
of traffic volume,
but it was adjacent tosuburban neighborhoods
where the homes were allover a million dollars.
But did anyone ever see aGoogle ad from this company?
No, they did no advertising in five years.
They never ran ads. They onlyrelied on drive by traffic

(03:59):
and their location, whichin most retail businesses,
location alone isinsufficient for your growth.
You have to advertisingeven more disappointing was
that it was a half amile from a high school
with nearly 4,000 studentsand never ran ads.
As painful as it can be,always keep your ads going
with something never stop.
Every sale, every ad impression

(04:20):
with a customer builds your brand.
Okay, stay with me here.
Let's move on to my second method
of identifying yourideal Google Ads budget.
Based on your sales goals.
Let's say you want to add10,000 more a month in sales.
If your average order is a hundred dollars
and it costs you $10 to converteach prospect to a sale,
you need a hundred new sales
to hit the additional 10,000 in sales,

(04:41):
and you'll spend about a thousand on ads
to get there since it costs $10
for a new lead or a customer.
I'm just giving you anexample numbers here,
but it's imperative
that you have yourdigital plumbing in place
to track conversions sothat you know what it costs
to acquire a new customer
and to make your Google Ads accountable.
Many businesses don't have this set up

(05:01):
and I have a link to an additional post
and video setting upconversion tracking, so be sure
to check that out if you'reunclear how to set that up
with Google Ads orreach out to me directly
and we provide a service
for setting up conversiontracking for you.
But here's how you can estimateyour ideal Google Ads budget
from your sales goals.
If you don't have anyinformation, all you need

(05:23):
to do is a bit of researchusing the free Google Keyword
Planner Google Ads lookup the cost per click
for search terms in your niche.
Here's an example for medical weight loss
and related searches,
the cost per click rangesfrom approximately $3 to $16.
Next, we need to estimatethe conversion rate
of Google ad clicks to actual leads.

(05:43):
If you're insurer of what areasonable conversion rate is
for your website
and you don't have the data,go to an AI program like Gemini
or chat GPT
and ask, here's what Geminicame back with for our example.
So my cost per click isbetween three and $16.
Then for our estimated conversion rate,
let's split the differencebetween what chat GBT gave us

(06:05):
and say our conversion rate is 6%,
which means our cost perlead is roughly between 50
and $267.
With these numbers, Ican now figure out how
to arrive at my optimal GoogleA spend based on my goals.
So let's say your goal is togrow sales by 5,000 per month
and your average saleis a thousand dollars,
then I need five new leadsto hit my sales goals.
If leads cost between 50

(06:26):
and $267, I need to spend between 250
and $1,300 in Google ads per month
to achieve my sales goals.
But suppose you don't know what it costs
to acquire a new customer,
and in that case, another way is
to estimate based on thenumbers from your p and l
or your income statement,just divide your marketing
or advertising monthly spend by the number

(06:46):
of new customers per monthover the last 12 months
or so, you get a roughestimate of the historical cost
to acquire a new customer.
Then use that number to help you back into
what you should be spending per month
to achieve your sales goal.
And the third and final way
to arrive at your ideal GoogleAds budget is the benchmark
against others in yourindustry or similar businesses.

(07:08):
You're not operating in avacuum, so knowing what's typical
for your niche can help guide you.
Now, this isn't always easysince you will have to dig
for these data, but many
of our clients base theirGoogle ads budgets on
what others in the industry are spending,
which we provide to them as clients.
Finally, here's my advicewith your Google Ads budget.

(07:28):
Never stop advertising yourbusiness ever out of sight.
Out of mind is the old adage,if you have to pull back
or reduce your spend, thenpull back on the ad spend,
but don't stop.
If you want to grow,
successful businesses alwayskeep their brand visible
even during slower season.
So there you have it.
Three different methodsto determine exactly

(07:50):
how much you should spend on Google Ads.
First was a percentage of sales
that goes into your GoogleAds budget based on the type
of growth you're seeking.
The second method was
to back into your A spendbased on your sales goals
and use the estimates ofyour cost per conversion,
cost per click from Google Ads traffic,
and then finally estimate

(08:10):
how much you should bespending on Google Ads based on
what others in your niche orsimilar niches are spending.
But remember, your return is directly
proportional to your investment.
Larger ad spends mean more exposure,
more traffic, and more sales.
So I help that helped you identify
how much you should spend with Google Ads.
But if you're still unsure

(08:31):
or have more questions onS-E-O-P-P-C, Google Ads
or digital marketing,please contact me now,
we can help you grow sales.
Just call me at [phone]
or email me at [e-mail].
And a friendly reminder
that if you found thisvideo helpful, don't forget
to click like on the video
and subscribe to my channel
for more actionable digitalmarketing tips and strategies.

(08:53):
And until next time, we'll see you online.