It’s never a wise decision to begin any new venture without first doing your homework. And we can’t blame business owners for wondering how much they should spend on Google AdWords and pay-per-click (PPC) advertising. Unfortunately, there’s no “magic number” that guarantees a maximum return on investment with online advertising. Like most business expenses, everything is relative. After all, some massive companies spend $50 million annually on PPC advertising –– while other small operations spend less than $1,000 per month. So while there may not be a uniform answer to the question of optimal Google AdWords spend, there are ways you can determine what’s a good starting point for your business. Here are three factors that should influence your decision-making on PPC ad-spend:


Most business owners starting out with their first PPC campaigns are hesitant to invest heavily in a new advertising method. That sentiment is understandable –– since no one wants to risk substantial capital on a business venture they’ve never explored before. And to some degree, a reluctance to splash the cash initially can be a good thing –– particularly if your team lacks the experience of managing a PPC account. However, it’s worth noting modest spend is unlikely to yield eye-catching results for businesses new to the digital advertising games. This is partially due to the fact that Google will rank AdWords ads based on the size of the bid behind it and the quality score of the ad itself. So if you’re not spending more money than your competitors, and your ads don’t have a higher quality score, the online visibility of your ads is going to suffer as a result.  


In one sense all pieces of digital content compete with each other for consumers’ attention. In practice though, that doesn’t mean a local bowling alley needs to match the digital ad spend of a Fortune 500 company to draw in leads online. Far from it. Every industry is different and, as such, your AdWords’ conversion rates and cost-per-click prices should be viewed within the greater context of your industry. For instance, advertisements for lawyers and attorneys have a higher average cost-per-click than ads for E-commerce services or educational institutions. What’s more, keywords within industries themselves range in value –– the more competitive the keyword, the higher the price. This is one reason why businesses should value long-tail keywords with lower costs, and also why they should work to eliminate unqualified leads clicking on ads through the use of negative keywords. 

Desired Impact

At the end of the day, online advertisements like Google AdWords are an investment; you can either choose to back them heavily or instead elect to put only menial amounts of capital forth. Just know how much you’re willing to spend on your PPC ads will have an effect on their performance. If you need to make a big impact for a new product, then only shelling out the bare minimum on PPC ads to support it won’t do you much good. More important than how much you spend on your ads though, is how you manage them. Because while every business’s budget is unique, the precepts of creating and maintaining an effective PPC ad campaign remain the same across the board.

Final Thoughts

Spending all of the money in the world on PPC advertisements won’t benefit your company in the slightest if you don’t have the time or the know-how to manage your account properly. The good news is, our team at Agile & Co. has the experience and the skills to ensure you get the best possible returns from your ad spend. Contact us today to get started! Plus, for more information on how you can implement Google AdWords into your existing marketing strategy, download our free eBook here
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