How much money do I need for Google AdWords?

The amount of money you need for Google AdWords depends on your advertising objectives, yet people commonly achieve successful Google AdWords campaigns by spending just a few dollars a day. Keep in mind that you should not set out to spend a lot of money on Google AdWords until you’ve completely understood what it takes to create a successful Google AdWords campaign.

Unlike traditional media advertising, Google AdWords does not require a big upfront investment in order to begin advertising. Google charges a mere $5 to set up an account, which can actually be offset by coupons offered by many websites. After that, you set your own budget and spend what you can afford.

Even still, you might wonder how much money it really takes to be successful with Google AdWords. To answer that, you need to do some simple math. First of all, calculate how many sales you wish to convert each day from Google AdWords clicks. Now, let’s assume your conversion rate is around 1%. That means you’ll need 100 clicks to convert each sale.

Next, you’ll need to figure out what each Google AdWords click will cost you. This will depend entirely on how competitive your keywords are and your quality score for each keyword. To be safe, start with a fairly competitive amount like 50 cents, keeping in mind that some placements will cost you a dollar or more. With a 1% conversion ratio and 50 cents per click, it will cost you $50 to convert a single sale.

If paying that much for Google AdWords does not work for your business, then you’ll need to do one of the following: increase your quality score to pay less per click, improve your conversion ratio with better ads and a more optimized website, or examine whether Google AdWords is even a good fit for your type of product or service.

See: What makes people instantly click Google Ads now?