top of page
  • Writer's pictureMike

Determining Your Google Ads Budget: A Crucial Step for Success

Running successful Google Ads campaigns requires a careful balance between investing enough to generate leads or sales and avoiding overspending. Determining the right budget is crucial, and the Keyword Planner tool can help you make an informed decision.

Google Ads Budget

Understanding the Keyword Planner Tool

The Keyword Planner is a free tool available on the Google Ads platform, located in the "Tools" section. This powerful resource lets you enter your target keywords and receive valuable insights, including the average cost-per-click (CPC) and forecasted budgets.

Calculating a Minimum Budget

To calculate a minimum budget, follow these steps:

1. Enter your target keywords into the Keyword Planner.

2. Note the average CPC for those keywords, which might be around £3 (this can vary based on your industry and location).

3. Determine the minimum number of clicks you want daily, ideally between 10 and 20.

4. Multiply the average CPC by the desired number of clicks.

For example, if the average CPC is £3 and you want 15 clicks daily, your minimum daily budget should be around £45 (£3 x 15).

Considering Conversion Rates

While the minimum budget calculation provides a starting point, it's crucial to consider your website's conversion rate. If your conversion rate is 10%, you can expect one lead or sale for every ten clicks. However, if your conversion rate is lower, say 1%, you might need to run your ads for five days at 20 clicks per day before seeing a conversion.

Budgeting for New Campaigns

When launching new campaigns, it's advisable to allocate a higher budget for the first 90 days. This initial period allows your campaigns to go through the learning and optimisation phases, collecting valuable data that will help them perform better in the long run.

Increasing your budget during the first 90 days enables you to gather more data faster, leading to more effective campaign optimisations. Once your campaigns are optimised, you can consider reducing your budget or maintaining the higher level if you're satisfied with the number of leads or sales generated.

Don't Underspend

While a higher budget might seem daunting, underspending can be counterproductive. Google Ads is a powerful platform, but it requires a reasonable investment to yield positive results. Attempting to save money by allocating an insufficient budget could lead to wasted ad spend without generating the desired conversions.

Monitoring and Adjusting Your Google Ads Budget

Determining the right Google Ads budget is an ongoing process. It's essential to monitor your campaigns closely and adjust your budget based on performance metrics and business goals.

If your campaigns are generating a healthy return on investment (ROI) and meeting your lead or sales targets, you might consider increasing your budget to capitalise on the momentum. Conversely, if your campaigns are underperforming, you might need to reevaluate your targeting, ad copy, or landing pages before adjusting your budget.

Continuous Optimisation

Successful Google Ads campaigns require continuous optimisation. Regularly review your keyword performance, ad copy, landing pages, and conversion rates. Make data-driven decisions to refine your campaigns and ensure you're allocating your budget effectively.


Determining the right Google Ads budget is a crucial step in achieving success with your campaigns. By leveraging the Keyword Planner tool, considering conversion rates, and being willing to invest sufficiently (especially for new campaigns), you can set yourself up for success.

Remember, underspending can be counterproductive, so don't be afraid to allocate a reasonable budget. Continuously monitor your campaigns, make data-driven adjustments, and optimise for better performance and a higher return on your advertising investment.

6 views0 comments


bottom of page