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Determine Your Google Ads Budget and Leverage Those Marketing Dollars

Posted by Zach Chapman

setting your google ads budget

Using Google Ads is a great way to send more traffic (the good kind!) and profit to your website or blog. The Google Ads process relies on bid strategies that allow business owners to bid on keywords that help create ads related to their business.

Any company that uses advertising should have a monthly budget for its advertising campaign. Finding and creating your Google Ads budget can help you grow your company at a lower price. This article will teach you what you need to know about setting a budget with Google Ads, following the budget, and budgeting mistakes to avoid. 

Get your thinking caps on because we are about to take a wild ride on the Google Ads train.

What are Google Ads?

As the largest provider of search advertising on the market, Google Ads allows you to create ads that are unique to your business. One of the best parts about the service is that you only have to pay for the advertisements that are successful in the long run. 

You can use advertisements on your website, blog, landing pages, and wherever else you showcase your business. Because ads can increase brand awareness by 80%, getting in on a piece of the pie should be on your top list of priorities.

To start using Google Ads, you will need to set up your Google Ads account. Don't worry. You can wrap this up before you can say “Sparkinator.”

Setting Up Your Account

When you first set up your account, you will decide what you are looking for in an advertisement. You can choose to receive more calls for your business, more foot traffic, or more sales through your online store or website.

Once you select your option, you will enter the name and address of your website. Google Ads will provide an advertisement template based on your website, and you can customize the template. Remember that you want people to click on your ad, so make sure the advertisement stands out in a good way, like a newly polished coin shimmering in the sunlight.

You will continue to answer questions about your Google Ads campaign, such as where your business is located and any keyword themes that fit your website. 

Google Ads Budgeting

The next step in setting up your Google Ads account is to figure out your budget plan. This isn't rocket science, so don't fret. Google Ads has three automatic daily budget options to start with.

google ads budget

You can also add your budget, which you can adjust by using a sliding scale (everyone loves a sliding scale). The maximum daily amount of ad spend is $205, but let's not get ahead of ourselves just yet. Google Ads works on a cost-per-click (CPC) system that allows you to pay for ads that generate some form of traffic. As a result of the fluctuating traffic, you might pay less one day and more the next.  

According to Statista, "It was found that the CPC in the second quarter of 2020 was at 0.49 U.S. dollars, compared to 0.69 U.S. dollars in the second quarter of 2019." 

Determining Your Budget

If you’re a business owner, you’re likely already running one or more marketing campaigns. You probably want to find out the best way that Google Ads can help your business.

Well, you're in luck because Google Ads provides a keyword planner to help you understand which keywords can help your budget


To secure keywords, you will need to bid against other people for them. Search queries will help contribute to the available keywords.

Whether or not you're hailed as the champion of a keyword bid will depend mostly on two factors: Your maximum CPC, and the quality score of your advertisement. The higher the maximum CPC and quality score, the more likely you’ll be to take the prize home.

When more than one person bids on a keyword, an ad auction will start. The amount of money you are willing to pay for a keyword (or the maximum CPC) can help you set your monthly or daily budget. May the odds be ever in your favor.

Your Competition

Knowing your competition is the best way to get ahead of them when it comes to marketing and business. By researching a keyword planner, you can see what your typical competitor is spending on keywords and pay-per-click (PPC) campaigns.person doing a competitor analysis

To stand out from your competition, you can take advantage of less common keywords. By using less common keywords, you can also save a lot more money than your competitors. You can adjust your maximum bid price to be slightly higher than your average competitor to get a leg up in the marketing competition. 

Researching keywords is also a good way to help you find a field that does not hold much competition. While your traffic and turnout are likely to be lower at first, advertising to a low-competition market can help you grow a loyal audience. It can pay off to fly under the radar, as your competition won’t notice you right away. 

Your Traffic

The amount of money you spend in a month (or a day) can also depend on how much traffic you are hoping to receive. Google Ads will estimate a certain amount of clicks on your ad for every dollar that you intend to pay. 

Allocate Your Budget

Once you set your budget, you must use the money you set aside wisely. While every business wants to save money, you will be able to draw more traffic if you use up your budget.

Put your money into relevant keywords, and you will be able to make the most out of your budgets and bids, earning a great return on investment (ROI)

Budgeting Mistakes to Avoid

While seemingly simple, budgeting is not always an easy task. Many people make mistakes their first time around budgeting. Don't be one of those people. By knowing which mistakes are most common, you can avoid being the laughing stock of the Google Ad world. 

No Budget

Many people like to budget in their heads or make a vague plan. Not having a concrete budget on good old pen and paper will often do more harm than good. We need visuals, people!

Being Too Strict

On the other side of the spectrum, it is possible to be too strict with your budget. When you are setting a budget, you will want to include a little wiggle room to adjust to the learning curve. You may find that you are seeing good results and would like to invest a little more into advertising.

Companies like Coke have increased their advertising campaigns to be a majority of their budget. Because of this, they've become a leading name in the industry. Being flexible and adapting to the market is critical.  

Not Using Your Budget

There is no point in setting a budget if you have no plan to use the money for that purpose. Your budget is the maximum amount of money you can spend, but you have nothing to gain by not financially contributing to your business. You have to live on the wild side a little to take necessary risks.


There’s a good reason why there are more than 2 million Google Ads accounts in existence! Setting a Google Ads budget can save you money while bringing more traffic to your online or in-store business.

If you want to reduce the stress of looking like a noob when it comes to Google Ads, Sparkinator can help you leverage your marketing dollars. Our team customizes your Google Ads to your business needs by using a hands-on and data-driven approach. To get your customers saying "I'll be back," get a free review of your ads account today!

Set Up My Free Ads Review

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