How Much Should I Spend on Google Adwords?

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3 Step Guide For Creating A Google AdWords Budget

One of the most frequent questions people ask about Adwords is “How Much Should I Spend On Google Adwords PPC?”. The best answer to this question is “It depends”. One of the best things about this PPC platform is that it’s highly customizable, enabling you to make the right decisions that cater to your own personal needs and the needs of your business.

In order to create a profitable campaign and make the most out of your PPC campaign, it is imperative to know how much to spend and to set the appropriate budget. Here are some guidelines that should help you in that regard.

1. Start low

The daily budget is totally up to you. However, in the beginning it is recommended to start with a minimum amount, of let’s say $50 per day. After one or two weeks, you can go up to $75 or even $100 a day. $50 may seem like a lot but you need to spend some money in order to get the data that you need and to feel out your industry so you can optimize your campaign to run and generate you leads efficiently.

During this testing phase invest in more ads and various options in order to see which one works best for you. The testing phase should be a form of market research in which you should not expect to get back the dollars you invest.

2. Cap the keyword at $5

Depending on your competition, target market and website content, you should go with a standard $3-$5 per keyword. Once you get an idea if a certain keyword brings in profit or not, you can easily start to invest more money in that direction and decrease where you are not making money.

3. ROI

Once your testing phase is complete, you need to start maximizing your return on investment. During this phase, your budget should increase to about $150 – $300 per day. Compare CPC (cost per click) with EPC (earnings per click) and find out whether you are profitable or not.

Remember, Google Adwords is a highly customizable and very powerful advertising platform that can dramatically increase brand awareness, phone calls, leads, sales and among other things new customers. Invest wisely.


Ed Stapleton, Jr is a ‘Google Partner’ marketing expert who’s sold over 1,500 Google Ads clients and managed millions in ad spend. He heads up the front of the house at his marketing agency Clicks Geek where he manages sales and strategic relationships.

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