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How to Set up A Google Campaign Budget

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Setting up a Google Campaign Budget is not about the more, the merrier. You won't be able to get your ads to the top just by pouring money into them. There is a strategy behind it that, if you follow correctly, can take your google ads to the next level.

The actual method of setting up the budget is just a matter of a few clicks. In this article, we will also cover all the aspects leading up to that process.

Decide how much should you spend on Google Ads

Your first task is to decide how much you (and can you) spend on google ads. The answer will depend upon:

  1. The type of your enterprise

  2. Your business goals

  3. And your marketing budget

Depending on your business type, you must decide the cost of acquiring one customer. For instance, if you're running an ad for a car dealership, you'd need to spend more than you'd to for selling stationery.

Use the Keyword Planner to choose the right keywords

Your next task is to select the keywords you want to target. To get a general idea, use the keyword planner. This in-built utility will give you keyword ideas and a forecast of the average position, the number of clicks, the number of impressions, and the overall costs and cost per click that you can expect over the next 30 days.

It will also inform you about the keyword competition and the average monthly search. These two factors dictate the advert costs.

Setting the test budget for the Pay-per-click campaign

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Based on your keywords and findings, develop a test budget for your campaign

  1. Click on the Campaigns button in the sidebar

  2. Choose the campaign whose budget you want to set

  3. Select “Settings” from the sidebar

  4. Click on the “Budget” tab.

  5. Enter your daily budget

Run a Test Campaign

If you’re running an ad for the first time, it is advised that you do a dry-run of the campaign to see if your selection is effective:

  1. Choose your keywords

  2. Determine your bids (stay close to the google suggested recommendations)

  3. Set a test budget

  4. Optimize your campaign

  5. Run the test ad

Remember that it is a test run, so keep that in mind when setting the test budget.

Observe the information you have acquired by running a test campaign

The Click-through rate is one of the most important metrics to set up the Google ad budget. It tells you the percentage of the clicks your ad has gotten against the number of impressions.


It tells you the keywords responsible for those clicks as well. Higher CTR means a high-quality score for your adverts.

Check the Cost per Conversion

Your next task is to look at the percentage of people you have converted after clicking on the ad. It is the primary focus on setting the budget. While conversion rate is enough information, cost per conversion will tell you about your Return on Investment.


If the sale was thin and the Cost-per-conversion only helped you break even, you need to change the keyword.

Add Negative Keywords

Not every keyword leads to traffic that you can convert. Adding negative keywords is a good idea to prevent your ad from showing in the results for keywords that won't help you generate leads.

For instance, if you sell courses, then getting your ad for the “free courses online” keyword won’t help you get convertible leads. In other words, it would be a waste of money.

Finally, keep these factors in mind when setting up the budget, and you're ready to start running your ad.

Are you still wondering about how to set up your budget for your PPC marketing campaigns precisely? Reach out to Bizladder. Our digital marketing experts know about paid campaigns and will help you increase your ROI.

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