How to Select a Budget for Google Ads
Selecting a Google Ads budget is the foundation to your campaigns on Google Ads—it's what the...
The world of Google advertising can be confusing for beginners.
And if you're building an ecommerce business from scratch, it's going to take some time to gain visitors organically, which is why launching paid advertising strategies and using Google Ads can help you reach a pool of your potential clients is a great first step.
Simply put, Google Ads campaigns can help you jump the line in organic rankings on Google and send traffic to your website and/or store right away.
We recently published a "Guide to Google Ads for Beginners" post, which we recommend you read, but first, let's start from zero and set some expectations with exactly what you can expect with your first Google Ads campaign.
You're familiar with how Google works, yes? (If not, I'm surprised you stumbled across this blog!) Well, using Google Ads, essentially, is a way to ensure that your website and brand are appearing for relevant searches made by Google users.
As a result, the visibility of your online business magnifies when using Google Ads, appearing at the top of search results and promoting your products.
Before we continue, here are some key Google Ads terms to familiarize yourself with.
Although we listed Return on Ad Spend as the last item on the above list, it's crucial that we call it out specifically here, as it's a crucial measure in the effectiveness of your ads.
Return on Ad Spend (ROAS) is the metric that measures the effectiveness of the advertising programs by calculating the revenue made by your business for each dollar it invests in advertising.
You can measure ROAS by dividing the conversion value (or sales made) by total advertising costs. While there are other terms like CPA to measure the value of conversion that your website has, ROAS is superior because, unlike other factors, it's associated with more than a single action.
Just remember: The higher the ROAS, the bigger the benefit for your ecommerce business.
According to Google, businesses generally make an average of $2 in revenue for every $1 they spend on Google Ads..
And with 64.6% of people who buy products online clicking on Google Ads, there is a huge amount of potential for your company.
Those stats alone don't wow you? Consider some other key benefits:
We recommend (and yes, shameless plug here) that you go ahead and get Ampd—we make it really easy to get started by either walking you through the setup of a new Google Ads account (plus, qualified customers can get up to $150 in Google Ads credit!) or auditing your existing one.
But if you want to get started on your own, here's the process you'll need to follow:
After this, this is where the real legwork starts (unless you use Ampd—because we, in conjunction with Google, will take care of all this for you when launching a Site Wide campaign) because before creating your campaign, you'd need to:
Again, we want to remind you that Ampd is fastest, simplest, and most effective way to launch, manage, and maximize Google Ads for your ecommerce business. We're here to help take that off your plate in running your paid advertising campaigns so that you can focus on your to-do list.
Google Ads requires a daily budget, so before you get started, you need to decide how much you're willing to invest.
To begin, we recommend jotting down your goals and how much money you can start off with so the system can learn and optimize before you start seeing ROAS.
You can set a maximum ad budget for a month and have the ads bid automatically adjust to optimize according to requirements, which prevents your campaigns from overspending. (You can also implement bidding strategies like Cost Per Acquisition (CPA) and Cost Per Thousand Impression (CPM).
Additionally, you'll need to decide if you want to share your budget among couples of different campaigns rather than spending it all on a single campaign.
Google Ads has the power to help your business reach potential customers and get exposure quickly, but it's not a short-cut tool that will start making leads, sales, and revenues for you right away.
Initial Google Ads campaigns—within the first six weeks—should be a way to observe quality score, keywords, and client behavior, then you can continue making optimizations to drive up toward that desired 1x ROAS.
Just remember to be patient. It can take weeks to optimize and show some noticeable progress as Google learns what's most relevant for their users—and your business.
Although every business is different, here's a general timeline based on our data of what we consider to be the "norm" when launching a first Google Ads campaign:
Conclusion
We hope this post helped clear up some of your questions on what you can expect with your first Google Ads campaign.
As we mentioned above, a great next step for you is to read through our Guide to Google Ads, which is targeted toward beginners, but you can also go ahead and get Ampd today, and we'll help you start Google Ads for free today!
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