Google AdWords, or Google Ads as it is called now, has been around for a few years already. It is used by a lot of marketers, and tons of small businesses are benefiting from it. It has become a very powerful advertising tool, and it continues to develop, so every advertiser can utilize it with ease.
In fact, you can even integrate automation, so you can manage your campaigns more efficiently.
Below are some budgeting tips:
Run an Initial Test Campaign
If you are just beginning to use Google ads, it’s understandable that you don’t want to go all out since you still don’t know which will work and which ones won’t. Therefore, it is highly recommended that you run an initial test campaign.
Just to give you a heads up, though, on the very first campaign that you are going to launch, you may lose a little bit, break-even, or gain profit. Whatever the result is, this should give you a better idea of how you can approach your target market and which keywords are useful.
As for budgeting, you need to determine the number of keywords that you want to test and multiply it with the cost per click. For a keyword to have a good conversion, the number of clicks should not go below 100.
Monitor the Conversions
As you run the test, take note of the campaigns that have the highest conversions, and continue to push them so they will get more. At the same time, get rid of those that don’t work so you won’t have to spend money on them anymore. You can then focus on setting more budget to those that give you leads and sales.
Remove the Cap Once Your Campaign Becomes Profitable
Once you see that your campaign is gaining more profit, then you should go ahead and remove the cap. This is what most successful marketers do. You can start increasing your investment. After all, it takes money to make money, right?
At this point, your focus is not on containing the cost anymore, but on maximizing the Return of Investment. Select the most profitable Google ads campaigns and optimize then even more so you can further increase your sales.