In this post you are going to learn about:

  • Setting a Google AdWords Budget

Time Required:  8 minutes


Video – Google AdWords Budget – How it Works and Where to Start


Free Toolkit – Google AdWords Toolkit


Google AdWords Budget Basics

The Google AdWords Budget is set at a daily rate, however Google will spend more or less than the set amount based on the amount of quality traffic available that day.  While Google will go slightly off budget, Google states that it will not exceed your daily budget multiplied by 30.4% (the average number of days per month).


How much should you set?  You can set a budget as low as $5-10 per day.  This small budget can still have a strong impact, as long as you choose a very specific audience.  When trying to target a small audience, be sure to layer keywords with things such as gender, age range, geographic region, etc. to limit the number of people who will see your Ad, to just your core audience demographic.


Another factor to consider is the quality of keywords in a campaign.  If you have a keyword that performs well, you want to make sure that keyword is showing all the time.  If that keyword is lumped into the same campaign with a keyword that is not performing well, then your ill performing keyword is eating up the budget of your strong performing keyword.  To prevent this draw, the strong keyword should be separated out into it’s own campaign in order to maximize its return on investment.


The best way to set your budget is to work backwards.  Consider how much you’d like to spend per month.  It’s ok to start small, remember, the initial stages of AdWords is all about Research and Development, learning what works to motivate your desired consumer.


Free Toolkit – Google AdWords Toolkit


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