How Much Should a Small Business Spend on Google Adwords?

Did you know that businesses generate $2 for every $1 they spend on Google Ads? 

If you run a small business, you might be in a position where you’re ready to run your first Google AdWords campaign. However, you might not know how much money you should put aside for your campaign. 

Read on, and you’ll learn the answer to the question “how much should a small business spend on Google AdWords.” If you’re ready to invest in Google AdWords, these tips will help you identify the right ad budget for your business. 

Let’s begin!

How Much Does a Click Cost? 

If you want to work out how much your campaigns will cost, you first need to figure out how much a ‘click’ will cost. To do that, you need to have a rough understanding of Google AdWords and how the platform works. 

When you run a Google Ads campaign, you will target a specific keyword, and you will pay each time someone clicks on an ad that targets your chosen keyword. 

Now, the cost of a click is determined by how much other advertisers are paying to target the same keyword. 

That’s because AdWords uses an auction mechanism, and so the price will go as high as other people are willing to pay. You can determine the current price of a keyword by using the Google Keyword tool. 

Following this, you need to identify which keywords you want to target. In doing so, you can then use the Google keyword tool to determine the estimated cost of a given keyword. 

Once you know the cost of a click, you can then estimate how much your ad campaigns will cost you. For instance, if a click costs $5, and you want to generate five clicks per day, your campaigns will cost $25 per day.  

Optimizing Your Ads

When running an AdWords campaign, there isn’t much you can do about the CPC cost of a given keyword.

That said, if you run a Google Ads campaign, there’s a good chance it will have some inefficiencies. Thus, if you optimize your ad campaign so that it doesn’t include these inefficiencies, you will lower your overall ad costs. 

If you’d like to learn more about the ways to optimize Google AdWords campaigns, you can read some of the official documentation by Google. 

Another option is to hire a Google Ads management company.

Such companies will know of best practices that will help you to lower the overall cost of your ad campaigns. They will also know how to use the latest Google AdWords features, thereby allowing you to optimize your campaigns even more. 

How Much Should a Small Business Spend on Google Adwords? 

There isn’t a single answer to the question, “how much should a small business spend on Google AdWords?”

After all, each business deals with its own unique set of keywords, which often means that there’s a wide variation in advertising costs. 

If AdWords is too expensive, there’s always the option of trying other ad platforms. Now, other platforms might not be as effective as AdWords, but they can be a good starting point for companies with a small ad budget. 

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