How To Set Google Ads Budgets Correctly - Google Ads Budget Recommendations and Forecasting
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SEO & SEM60%
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Google Ads Budgeting: A Google Ads budget is the amount of money you choose to spend on your ads each day. Setting the right Google Ads budget helps you control costs, reach the right people, and get better results from your campaigns. You can set a budget for each campaign, so it's easy to focus more on ads that are working well or test new ideas without going over your limit. Whether you have a small or large budget, understanding how Google Ads budgeting worksโlike how daily limits are managed and how Google spreads your budget over timeโcan help you spend smarter and avoid wasting money.
Summary of Key Points (with Timestamps)
[00:00โ01:00] General Approach to Budgeting
The video explains how to set Google Ads budgets using three business examples: a local plumber, an e-commerce fruit tree seller, and a yoga studio.
Emphasis on starting with test budgets and scaling based on performance and cost-per-lead data.
[01:00โ03:45] Local Plumber Example
Recommends starting with Local Service Ads (LSAs) for service businesses like plumbers.
Suggests a starting budget of $1,000/week ($4,000/month) to ensure effectiveness.
Highlights that too low of a budget wonโt yield useful results.
[04:00โ13:00] Search Campaign Budget Forecasting
Demonstrates using the Google Keyword Planner to estimate costs per click (CPC) and forecast results.
Recommends $5,000โ$6,000/month for plumbing campaigns in high-competition cities like NYC.
Points out that higher daily budgets (e.g. $300/day) may be needed to reach optimization thresholds (~200 clicks/month).
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