A very common mistake that companies make is that they do not choose the right amount of money to invest in Google Ads. Because of this mistake, in this article we are going to talk about the right amount to invest in your campaigns.

The investment must be well focused, that is to say, the campaigns to which we should invest more money are those that work best. Naturally, most companies do the opposite, and this is because we believe that investing more money in campaigns that do not work will suddenly make them work. These types of campaigns usually have a very high cost per conversion. Another common mistake is exactly the same but in reverse, there are companies that invest very little money in campaigns that work well. These types of campaigns have a higher conversion rate and a lower cost per conversion.

To set up your investment budget properly, you should ask these 3 questions:

What is your current percentage of search impressions?

In case you did not know, this information is a measure that Google gives you to measure the percentage of times your ads are shown for the specific keywords you are using in your campaigns, or a tracking of the geographic territory you have used in your campaigns. A very easy way to understand this metric is that having an impression share of 30% means that out of every 100 searches, your ads have been shown 30 times. You can get more information by checking your percentage of impressions at the top, or also the share of impressions at the absolute top. These metrics will appear in the columns section (competitive metrics section).

The ideal is to have an impression search rate of 20%. Once you have reached this level you can focus on optimizing your conversion rate and your cost per conversion. For example, if your conversion cost is 15€, but currently your conversion cost is around 20€, it would be a mistake to increase the budget because this action takes you in the opposite direction of achieving the desired cost. In this case, Google will recommend you to increase the conversion budget, but increasing your budget will not achieve the expected results. The only thing you will achieve is to magnify the results of your Google Ads campaign.

Investing more money in campaigns does not guarantee better results. The important thing is to get a good percentage of search impressions, so it is very important when setting up your Google Ads campaign to make sure you have a minimum search impression percentage of 10%. Ideally, as I mentioned before, it would be a percentage of 20%. Once this level of search impressions is reached, it is advisable to optimize your campaigns to achieve a lower cost per conversion and thus adapt it to your investment capacity.

What is the current cost per conversion compared to your budget?

Companies invest more money in campaigns that have a high cost per conversion. They make this mistake in a common way, being SERIOUS and preventing them from obtaining good results in Google Ads campaigns. This generates low conversion rates and quite high costs to generate conversions. On the other hand, there are low acquisition cost campaigns, with a high conversion rate and a lower investment of money.

This is because companies have their budgets "mixed up" and are not targeted correctly. Poorly configured budgets can make it difficult to get the most out of Google Ads campaigns. If the company invests a smaller budget in the campaigns that are generating better results, they are limiting their performance and getting lower results than what they could actually achieve.

If you are working with several campaigns, focus a BIGGER budget on those campaigns that have better results, this way you will improve the performance of your campaigns.

What is the current cost per conversion compared to your budget?

This question should ultimately be asked once companies have been able to corroborate that the cost per conversion and conversion metrics are appropriate. At this point it is considerable to compare budgets with the percentage of search impressions. Once you are satisfied with these conversion metrics, and you have a low search impression percentage, you are then able to increase the campaign budget.

You must make sure not to increase your budgets by more than 20% at once, as a very interesting option would be to show your ads to potential customers who have already interacted with your products or visited your website, through REMARKETING.

Remarketing is a marketing strategy that has a high conversion rate, because the customer already knows your product. Numerous companies have taken advantage of this strategy in order to obtain a higher profit from their marketing campaigns.

If you still don't understand what is your ideal budget for marketing campaigns, we can help you 100% free of charge, we will study your project and advise you with experts without any obligation.

What are you waiting for? Do you have something to lose? >> Click here

And that's all for today family, have a happy week! :)