How Much Should Your Business Spend on Google Ads?

As footfall drops due to the pandemic, many businesses in Yorkshire can benefit from Google Ads in 2021 and beyond, to drive sales and new custom. In this week’s blog post, we identify the costs and work involved in setting up a Google ad.
The basic premise of Google ads is unlike other channels that may charge a flat fee (think radio, billboards and local directories). Google ads works on an auction system, which lets the advertiser essentially ‘bid’ on certain keywords and search terms, such as “Leeds retailer”. Each set of keywords comes with its own pricing, and is personalised to be relevant to exactly what your audience is searching for. By using this system, businesses are able to target consumers that are already interested in their product or service, and are actively searching for such.

As Google Ads is an auction site, popular keywords can cost more, as they compete for the top spot. There is no minimum spend on Google Ads, however it is advised to invest an appropriate amount to see traction. Without traction, Google Ads will have inadequate data to be able to report and adjust individual campaigns.
Dependent on the nature of your business, the recommendation is to start with at least £20 per day, if your business has never used Google Ads before. Alternatively with experience, the budget can be increased if there is enough confidence that the keywords will perform well. This is a judgement that needs to be made by the business.
As your Google Ad campaign begins to collect valuable data, you may wish to evaluate the cost per click. Cost per click is the value of each click through to your site, which can be adjusted within the Google Ads platform to suit your businesses budget. Additionally, it is important to track your cost per conversion. This may mean asking your customers or callers how they found your business, which can then give an indicator of if your Google Ad campaign played a part in that conversion. Alternatively, Google Ads allows for conversion tracking for ecommerce sites, which will allow you to track the entire customer journey, from ad click to conversion.
Paid advertising via Google is a worthwhile investment for most businesses, and can take time to develop before becoming successful. If your business in Leeds or the surrounding area is interested in outsourcing marketing or paid advertising to save time, contact us on to see how we could help you achieve your marketing goals this year.

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