Google Ads (PPC) is a powerful tool for driving traffic to your website and generating leads. It allows you to reach potential owners by appearing at the very top of the search results page whenever users perform a search.
With Google Ads, you can target users based on keywords, locations, and demographics. But for optimal results, your click budget needs to align with what Google recommends. Misaligned budgets can lead to missed opportunities or wasted spending.
How Does Budget Impact Advertising Performance?
- Budget constraints can limit your overall advertising exposure. Depending on how competitive your market is, a lower budget may make your ads less likely to appear on the search results page compared to competitors that have a higher budget. For example, if Google is recommending $1,000 per month and you are only spending $500 per month, you can then expect half of the overall clicks and leads with that budget than you would see with a budget of $1,000 per month.
- Your monthly budget impacts how much you can bid on keywords you are targeting. You can think of keyword bidding like an auction. With a small budget, you need to cap bids lower than competitors. This then leads to receiving fewer clicks and impressions on those ads.
How Do We Know Your Monthly Google Ads Budget?
- For a brand new Google Ads campaign with no historical data, we plug all of the keywords that we typically use into Google’s Keyword Planner. This planner then gives us estimates on clicks, budgets, and search volume. Higher competition usually means a high Cost Per Click (CPC), so a larger budget may be needed to drive conversions and increase the overall visibility of the ads.
- It can vary based on the campaign and client, but we typically target the entire U.S. with ads. Therefore, the budget may be different depending on what campaign you want to go live with and what your goals are.
- Once we go live, we may tell you that Google suggests increasing your budget if it does not align with the areas and keywords we are targeting. For example:
- If we are targeting keywords with high search volume, Google will suggest a higher budget to try to help increase conversions.
- Google is always analyzing and learning your account. If Google sees your campaign often hits the daily budget before the end of the day, it will suggest a higher budget to ensure your ads are showing consistently at the top of the search results page whenever users are performing a search throughout the entire day.
How Does PMW Control My Ad Account’s Spend Throughout The Entire Month?
- Google has the potential to spend double the daily budget on high-traffic days. Our account managers go into your account every morning to ensure that your account can spend every day throughout the month.
- Our account managers set bidding caps on keywords and ad groups to prevent Google from running through your account's budget. As we said, Google has the ability to spend twice as much as your daily budget! That is why setting a cap is important because we want to show every day throughout the month.
- For example, if your budget is $300 per month, and we want to show every day throughout the month, we would set your daily budget to $10/day starting. Now, depending on search volume and click volume on any given day, this number changes. We aim to get as close to your monthly budget as possible without Google overspending. Also, you are only charged for the clicks you receive! If you spend $298 of that $300 budget, you will only be charged $298 that month.
Need help to grow your digital presence in the property management space? PMW has you covered for all of your digital marketing needs!
For more knowledge on how paid ads can increase traffic to your website, check out our blog post Do Paid Ads Affect Organic Growth?
In addition, if you are interested in getting started with Google Ads or are wondering what your budget would be, please schedule an onboarding call with our Director of Paid Search, Samantha Adams.
