Before you think about creating an ad campaign for your business, the first thing that you consider is the budget.

According to stats by Net Market share, Google returns $2 for every dollar that you spend on it.

But if your budgeting strategy is not guided, you might end up losing money in clicks that do not convert.

That’s why it’s important for you to have a Google Ads budgeting strategy made by a google ads consultant to get maximum Return on Investment (ROI).

In this 3-minute post, you’re going to learn about the budgeting tips that ensure your Google ads success whether you do it yourself or take any form of PPC service.

Top 9 Google Ads budgeting tips for businesses

1. Set a clear advertising objective

Firstly, your marketing team should be clearly aware of your overall business goals.

It should sync with your advertising goals.

Suppose you run a specialty bakery that specializes in gluten-free desserts. Your overall business goal could be to increase annual revenue by 30%.

In this case, your advertising goal might be to promote a new line of gluten-free pastries and cakes to health-conscious individuals in your local area.

Within your advertising strategy, you could employ Smart Bidding techniques to precisely target relevant keywords such as “gluten-free bakery” or “celiac-friendly desserts.”

2. Connect Google Ads and Analytics

Connecting Google Ads and Analytics is a crucial step in optimizing online advertising efforts.

Google Analytics provides post-click insights, revealing user behavior beyond ad clicks. This data empowers advertisers to make data-driven decisions.

It helps refine campaigns and enhance ROI by gaining a comprehensive understanding of user interactions with their website, ultimately leading to more effective marketing strategies.

3. Don’t overspend.

Establish a monthly budget for your Google Ads campaign and maintain consistency.

Google Ads offers the option to set daily spending limits but remember that daily costs can fluctuate due to changing search traffic patterns.

On high-traffic days, your spending might appear higher. Avoid frequent budget adjustments. Instead, allow time for results to accumulate before making changes.

Google Ads automatically averages your daily limit over the month to prevent overspending, ensuring a steady and controlled advertising investment.

4. Avoid using Google Display Network if on a tight budget

Display ads can cast a wider net and reach more people than search ads, but here’s the catch – the conversion rates can be a bit lower.

That’s because display ads may not always reach folks who are actively searching for what you offer right at that moment. Well, it means you could end up spending a good chunk of your Google Ads budget for a smaller return on investment.

Instead, consider waiting until you’ve had some success with your search campaigns and you’ve fine-tuned your online marketing strategy. You can also contact a google ads consultant to help you with making the right strategy.

You can also take PPC service from an agency to help you with consistent efforts.

5. Precise location targeting

If you operate a local business with a physical storefront, your primary online advertising goal might be to drive foot traffic.

In such cases, displaying your ads to people in a neighboring state would be a waste.

Google Ads’ location targeting feature becomes useful in this scenario. Configure it to target only those individuals who are geographically close enough to visit your store.

For broader reach, target areas of strong performance, guided by Google Ads metrics and Google Analytics data to maximize your budget’s impact.

6. Target a lower position in SERPs

Ads in the fourth position or lower can still drive traffic while offering a lower cost per click.

Consider lower search result positions.

Lower-ranked ads still garner traffic at a lower cost per click.

This benefits businesses when users are in the research phase, as they might click top ads but not necessarily convert. Lower positions target more focused, conversion-ready users.

7. Choose long-tail keywords

Long-tail keywords, while less common, face reduced competition, resulting in lower average costs per click.

Their specificity appeals to potential customers who know precisely what they want, increasing the likelihood of conversions.

For instance, instead of generic terms like “portraits” or “photography studio,” target “graduation portrait special” to attract users searching for that specific service prior to university graduation.

8. Run specific campaigns

Opt for multiple campaigns instead of a single one-size-fits-all approach when allocating your PPC budget.

By creating distinct campaigns based on your website’s product categories, you can better target users with specific interests.

For instance, if you run an online store, separate campaigns for “electronics,” “apparel,” and “home décor” ensure your budget is strategically distributed, maximizing results.

9. Track and adjust

Don’t stop at setting your Google Ads budget and campaigns.

Google Ads’ flexibility allows you to refine strategies and budgets based on real-time results.

Continuously test and optimize campaigns using data from Google Ads and Analytics to ensure they align with your business goals. Effective management of your budget can drive meaningful results, regardless of its size.