• KaeRae Marketing

Minimum Cost To Do Google Ads and See Success

Updated: Mar 14, 2021

Google Ads is an excellent marketing tool to use for businesses to improve exposure online.

Google Ads - KaeRae Marketing
Google Ads - KaeRae Marketing

But Google Ads does have a cost to it. A common question I get from clients, "how much do I have to spend to see results?"

We all know that marketing has a risk, you spend time and money on the campaigns to get your business out there with the hope that your customers see it and choose you.

There is a term used in relation to Google Ads, it is "Pay Per Click" or "PPC". This describes the bidding strategy. There is a cost per click your ad gets a click.

With that in mind, you don't want to get get a bunch of clicks but try and get quality clicks to make the most of your budget.

Google Ads is set up to budget with a daily ad spend budget. This allows you to control your total costs. You will be able to choose how much you spend each day.

To find out how much you should spend each day, you need to use the Keyword Planner to find out what the estimated cost per click is for your target keywords and geographic area. I wrote a post about how to use the Google Ads keyword planner here.

Once you see how much it costs to get a click for your top keywords, you can start to create the budget formula.


Average Cost Per Click ( x ) Total Daily Clicks You Want

Trying to find the best budget will take time. You will find after 14-30 days of an active campaign you should use your conversion rate and conversion goal as your basis to increase the budget to reach the total goals you have set.

Here is an example,

My business needs 3 calls a day because 1 of the 3 calls normally becomes a customer. My conversion rate is 33%.

(This is an example to explain how to determine the budget, a normal conversion rate you should aim for is 10% and grow from there.)

My average cost per click for my top keywords is $15.00 to be at the top of the page and get the calls I want.

My budget would need to be a minimum of $45 per day to get the results I need for my business.

Here is the formula

$45 / day = $15 cpc (x) 3 clicks (or calls)

To determine the monthly budget for this example would be as shown below,

$45 / day ( x ) 30 days in a month = $1,350 / month

I am upfront with each business I speak with about using Google Ads for their business. Sometimes Google Ads is just not successful for certain businesses.

When working with KaeRae Marketing for Google Ads Management Services, we have a minimum budget requirement of $500 per month.

On a side note, we have a transparent ad spend policy that you can read more about here.

Free Consultation Call to discuss your business is available to book online here, with KaeRae herself.

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Tags: #Google #GoogleAds #GoogleAdWords #GoogleSearch #Keywords #KeywordPlanner #GoogleTrends #KeywordList #GoogleSearchConsole #GoogleAnalytics #NegativeKeywords #GoogleAdsExpress #GoogleExpert #GoogleManager