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How Much To Invest In Google Ads?

Google Ads is an invaluable tool for all types of businesses, including small businesses, micro-businesses, and freelancers.

We already told you before what Google Ads is and how companies can use it. In short, this Google tool allows businesses to get the right users’ attention on online platforms thanks to digital advertising. Specifically, Google Ads allows companies to appear among the first positions in the Google results list and generate display ads.

However, when designing a strategy on this platform, it is typical for the question of how much to invest in Google Ads.

1. How to know how much to invest in Google Ads?

The answer to how much to invest in Google Ads is: it depends. And it must necessarily be so because of how this platform works, in which several aspects must be considered.

First, to calculate how much you pay in Google Ads, you must understand that this platform works through an auction system. In this way, the ads are created based on keywords that will have different prices depending on the level of competition that those words present.

That is, if many other companies are creating ads using the exact keywords, the price will increase; therefore, it will be necessary to invest in Google Ads in higher amounts.

A failed strategy in the investment of Google Ads is to start with a minimum budget to increase the investment to achieve results. Due to how Google Ads works, this is not a good approach. It would make more sense to consider a startup strategy based on these parameters:

  • Make enough initial investment to get 6-7 quality clicks a day. The cost of these clicks will depend on the level of competition that exists in the area of ​​that business. Then, the strategy (and investment) can grow as those clicks provide valuable data about what type of user is visiting your website, thanks to your campaign in Google Ads.
  • It is more profitable to make a considerable investment in a short period (for example, investing 200 euros in a month) than to invest that same money throughout an entire year. This will allow the company to compete at the same level as others in that period instead of falling behind in budget.

2. Why invest in Google Ads?

  • Investing in Google Ads allows businesses to get more website visits and more sales and marketing leads.
  • The Google Ads strategy involves putting a company’s products and services in front of customers who are potentially interested in them. Thanks to this platform’s segmentation capacity, it is possible to access the company’s target audiences or the public.
  • It is an appropriate strategy if the efforts in organic SEO positioning are not giving the expected results.

3. Advantages of investing in Google Ads for a small business

  • The minimum investment is not required, unlike other online and offline advertising types. However, investing at least 5 euros a day is usually necessary if you want to achieve good results.
  • It represents an excellent return on investment. Google Ads provides, on average, an ROI of 8:1 ($8 for every dollar spent), according to Google figures.
  • It allows you to easily compete with other websites that are already more established or have already achieved organic positioning results.
  • It is also a winning strategy for local businesses since Google Ads offers to segment audiences based on location.
  • It is also helpful in obtaining valuable data on how a campaign works so that it is possible to make corrections according to the results obtained.

Also Read: The Seven Types Of Google Ads Campaigns

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