How Much Should I Spend On Google Ads?

Feb 27, 2019

For those manufacturing companies in highly competitive industries, PPC or pay per click ads can help “fill the gaps” of organic SEO. But, when a company decides to invest in PPC, the next question asked is inevitably “How much should I spend on Google Ads”? The answer to this question depends on a number of items, including budget, goals and competition. However, there’s a number of tactics that you can employ to find the right answer for your company, and we’ll go through those now. Plus, you’re always welcome to reach out to us for personalized strategic advice.

How Much Should I Spend On Google Ads?

First, a couple specifics. We’re talking specifically about Google Ads here, even though PPC applies to every pay per click ad, even those on Bing or Facebook or Instagram. And, we’re mostly concerning ourselves with Google Search Network ads right now, though many of the same points will apply to Google Display Network.

Google Ads are notoriously more expensive, but gets away with it for one reason: we, Google’s customers, are willing to pay! The #1 benefit of Google Ads is that they catch web searchers when they’re actively searching for something. Rather than presenting ads to those who fit the right demographic as they scroll their news feed on Facebook, Google shows ads to those who fit the right demographic AND have entered in the trigger keyword into their search bar. So, while the cost per click on the ads tend to be more expensive, the ROI can also be very high with Google Ads.

How much do Google Ads cost?

Well, again, it depends on the industry. The more competitive industries will have a higher average cost per click than those in a less-competitive industry. For generalities, though, the average cost per click in Google Ads is between $1 and $2. That’s the average – the most expensive keywords can cost upwards of $50/click. Here’s a couple additional stats from WordStream:

  • Giant retailers can spend up to $50 million per year on paid search in Google Ads.
  • The average small business using Google Ads spends between $9,000 and $10,000 per month on their Google paid search campaigns. That’s $100,000 to $120,000 per year.

How are you feeling? Does that number surprise you or scare you? Or does that sound about right for your company? To figure out how much your company should be spending on Google Ads, you have to get introspective. We’re about to ask you a number of questions, each of which is geared toward uncovering the answer for your company.

How much is a lead worth?

With each click on a Google Ad, you have the opportunity to turn a lead into a customer. So then, how much is a lead worth? If that lead were to become a customer, how much profit would your company see? What kinds of residual profit might your company earn from one happy customer? The answers to these questions will help you determine the budget for your next Google Ads campaign.

What’s your website’s conversion rate?

Once a person has clicked on an ad, the onus is on your company’s website to turn the lead into a customer. Which begs the question…what’s your website’s conversion rate? If your site struggles with a high bounce rate, slow loading time or too many one-time visitors, this may not be the time to invest big bucks into Google Ads. If your company’s website is a well-oiled machine, sending leads through the conversion funnel left and right, you can feel more comfortable focusing on a Google Ads campaign.

How many new customers would you like?

What’s your goal for new business? Would you like to exceed the goal, or would your business be stretched beyond capacity if that happened? Once you have your Google Ads campaigns optimized, it becomes easier to estimate exactly how much new business a month of PPC will bring in. From there, scale your Google Ads budget up or down accordingly.

Some last pieces of advice

Don’t forget to monitor your campaigns. Many companies overspend by forgetting to check on their campaigns. This is especially important for brand new campaigns. Remember, too, that each budget can be edited at any time. If you’re concerned about overspending, don’t be afraid to start small. You can always ramp up your spend as you fine-tune the campaign.

For more insight into Google Ads, set up a consultation with us at Don’t hesitate to get in touch!