When you want to run an advertising campaign on Google AdWords one of the questions could be: how much do I need to invest?
Well it all depends on the stage and type of the company. Are you beginning? Do you already have a counting flow of customers and you want to increase the volume? Does your company have a defined marketing and advertising budget?
Answering these simple questions you can begin to know how much money you need.
For getting well based information to define your advertising investment budget you can run a 30 days trial campaign. This is because the behavior of users in certain sectors fluctuates a lot from week to week and sometimes from month to month.
You can start with a low budget at the beginning, analyze the results of your campaigns and gradually increase the budget. If the campaign is working you can continue with it and maybe invest a little more but if it doesn’t, you can readjust your strategy.
One of the disadvantages of investing a low quantity is that the results will take longer to arrive. You will have fewer impressions, clicks and conversions and this will slow down the analysis of your results.
Only you can know the exact quantity for your investing and you will obtain that number considering all your possible variants and analyzing the stage in which your company is.
But if you’re going to start your company, you’ve never used Google AdWords and you need a reference number because you have a limited budget that you can invest then I can give you a number but remember that this is not a rule. You can invest in the range of $100 to $400.
You have to distribute that budget for at least 30 days and not to do this type of campaign in extra ordinary times such as Christmas or times with unusual behaviors related to your sector that could “dirty” the results.
Also you can do it in a more professional way. First you have to do a keyword research (this is one of the first steps before creating any AdWords campaign). Once you have those keywords, what follows is to estimate the volume of searches that these words can generate. For that you can do it from the keyword planner within AdWords.
There you can see the CPC (cost per click) of those keywords. The idea is to obtain an average CPC, an average CTR and estimate how many clicks you could be receiving per month to reach those searches.
Search volume x average CTR x average CPC. With this you could estimate how much it would cost you to reach 100% of the searches (100% impression share) And from there you can know if you can reach that 100% with your budget or only 50%, 25%, etc.
This tool or any other is not completely accurate but they are going to help you a lot.
The key is to analyze, adjust and then re-analyze and re-adjust every time you need it