how much spend on AdWords

Figure out your starting budget on Adwords


Google Adwords is not an ordinary channel of advertising. It is built as an auction marketplace; therefore, the amount you should be spending depends on your industry and the popularity of your keywords. So… How much should you spend on Adwords? Although planning your PPC budget can be time-consuming and quite challenging, it is essential you plan it well if you wan’t your advertising strategy to be successful and profitable.

When you start with Adwords, you should keep on mind that you are making an investment. The less you decide to spend, the limiter your opportunities will be. The important thing is to focus on your ROI and not on the cost of your Ads. This way you will be testing the real profitability of your campaigns. Eventually, you will be able to know what keywords are bringing you conversions and also which landing page message is working best for converting clicks into leads and customers.

How should you start?

When it comes to the amount spent on Adwords, there is no rule to cover it all. It really depends on your business, your goals and your capability. If you are an owner of a small ecommerce, you might want to start with a smaller budget. However, you should make sure that the amount is high enough for gathering enough data. Also, you might want to avoid limited exposure of your ads to your potential customers due to “Limited by budget” alerts.

How does the recommended budget from Google work?

There are two cases in which Google won’t display a recommended budget for your business:

  • You don’t usually reach your daily budget spend.
  • Your campaigns have limited data.

In the case that Google does recommend you a budget, then this amount has been estimated in order for your ads to be shown more often for your current set of keywords. 

Recommended budgets are based on the following factors:

  1. Recent campaign performance.
  2. Current campaign budget.
  3. Your keywords.
  4. Campaign targeting settings.

Why costs might exceed your average daily budget?

You might have noticed that some days you might spend on AdWords more than your daily budget’s set amount. This is happening because Google decides to spend more on days with higher search traffic for improving your performance and increasing your ROI. On Google words “Dipping into your daily budget for other days in the month helps to optimize the performance of your campaigns and helps make sure that your ads can run a little more on days when they’re very popular”.

This amount will be balanced by other days with a lower spend, when your traffic will also be lower than normally. However, you shouldn’t worry about spending too much without planning so. Google is going to allocate your budget during the month in such a way that your total amount spend won’t exceed the amount that equals to your daily budget multiplied by the average number of days in a month (30.4).

spend on AdWords



Source: Google Support


What is a shared budget?

spend on AdWords



On Adwords you can use a shared budget for allocating an amount among multiple campaigns. If you don’t have enough time for managing the budget of each campaign individually, then choosing a shared budget will be the perfect solution for you. When you are choosing an amount to be spent across multiple campaigns, Google will adjust the way your money is spent in order to increase your retutn-on-investmentRead here for tips on how to increase the ROI of your AdWords campaigns.

If at some point you no longer wish to use a shared budget, you can very easily go back to individual campaign budget for full control over how much you are spending on a specific campaign.

spend on AdWords





Source: Google Support



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