Gazz Digital: Digital Marketing Agency Alexandria VA

How to Determine a Google Ads Budget for a Small Business

If you’re a small business that wants to increase your online visibility, a strategic ad campaign is a great way to do so. However, small businesses typically have limited budgets for digital advertising, which makes it paramount that every dollar they spend on ads counts.

However, how can you determine your Google Ads budget as a small business? Here are three tips to help you find out how much you should spend to have the most impact on your customer reach and visibility.

Determine Your Daily Budget Ceiling

With Google Ads, budgets are created as daily budget ceilings. So you will determine how often you want your ad to run and how much you want to pay for ads per day.

You’ll divide your monthly budget by the average number of days in a month, which is about 30. You can also divide by a lower number—think 15 or 20—if you don’t want your ads to run every day.

Most small businesses have a minimum $20-$30 daily budget ceiling to start. Anything less than that will likely provide minimal exposure. It’s recommended to use the highest daily budget ceiling within your budget to get the maximum amount of exposure and enough data to refine both your ad campaign and your budget moving forward.

Estimate Your Ads’ Target Area

Google Ads allows for location targeting, which means your ads will appear to customers in a specific location. This makes sense, considering that if you’re a local business, you don’t need to advertise to clients who are not in your service area.

You’ll need to ensure your money is going where it would have the most impact. Determining a target location will also help you customize your budget. For example, you’ll pay less for ads if you target your hometown rather than a major city.

You can also start by targeting customers in a preferred area, or a location that you want to serve but don’t currently yet, to grow your business. The larger the target area, the higher the budget you’d want to allocate to ensure sufficient budget to reach the full area.

Look at Your Level of Ad Competition

Assessing your competition allows you to determine what they are paying per click. Google Ads provides tools so you can see click charges for your competition, so you can see how much they are spending on keywords, what the most successful keywords are, and how much they cost. You can also look at Google Ads history to find this information.

Click charges can average anywhere from $2-$4 per click, but prices can be much higher, especially for highly competitive industries. Determining what your competitors are doing—and what results they are seeing—can help give you an idea of what your budget should be for your ad campaign.

Launch a Successful Ad Campaign With Gazz Digital

So how much should your small business be spending monthly on Google Ads? Learn more about how to create a Google Ads budget by scheduling a consultation with Gazz Digital. We work with small businesses to help them maximize ROI when using Google Ads by launching a strategic and successful campaign.

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