How to choose your first You’re launching Google Ads. Your goal: to reach people interested in your product or service by appearing in search results.
To do this, you need to choose a budget. This is the maximum amount you spend per day and per campaign on Google Ads.
But how do you decide how much you’re willing to spend on a daily basis? What budget will allow you to reach your goal?
I’m a Google Ads Consultant (is that good?
and I’ll help you answer these questions… By asking you one:
How much are you willing to spend to win
a customer with Google Ads?
Discover the local CPC
Identify the average CPC in your region and industry
Set your target Cost per Acquisition
I often interact with advertisers who aren’t asking buy bulk sms service the right questions—the ones that can help them determine an initial budget.
The question is: How much are you willing to spend to acquire a new customer with Google Ads? In other words, what is your target Cost Per Acquisition?
You might say: it all depends on the customer! Obviously, you’ll be willing to spend a larger or smaller amount depending on what a customer buys from you in return.
Hence the first step: define your average basket
If all your products or services have roughly the jason felice imports manager same price, you can define an average basket value for your business. If you sell products or services at very different prices, it’s better to define an average basket value for each category.
Deduct your costs from the average basket to get your average margin.
Now that you know your margin, you can set your target CPA .
To illustrate, I’ll take the example of Quentin, an e-commerce retailer who sells sports shoes. Quentin knows his average basket: €84. His margin is €42. Quentin is willing to cut 25% of his margin to acquire a new customer with Google Ads, or €10.50.
Quentin’s target CPA is therefore €10.50
It’s your turn to do the exercise! Calculate your target CPA overall or by product or service category.
Now that you know how much you’re willing to spend to acquire a customer with Google Ads, move on to the next step: using the Keyword Planner.
Use the Keyword Planner to define your budget
Disclaimer : The Keyword Planner is an estimation tool . It is useful for advertisers who do not yet have a history and who want to fax marketing define an initial budget.
To access the Keyword Planner, you must have a Google Ads account.
Once you access the interface, go to Tools > Keyword Planner . You will be taken to a new screen. Select ” Get Search Volume and Forecasts .”