(Part Two) The Maximum Budget

The Perfect Google Ads Budget for Optimal Results

Have you asked yourself: “What should my Google Ads budget be?” It is one of the most common questions among founders and marketing managers looking to start advertising.

Usually, there’s a budget range that makes sense for a business. In yesterday’s post, I explained how to calculate the minimum budget for optimal results with your Google Ads.

The amount you can spend on Google Search Ads depends on the search volume for your product offering. Once everyone searching for your product sees an ad, that is the natural upper limit to your budget for search ads.

To calculate your maximum Google Ads budget, you need at least two numbers:

1. 1. The average monthly search volume for the keywords you want to advertise on: Find this in the Google Ads Keyword Planner or other keyword tools. If there are semantically similar keywords with the same search volume numbers, remove one of the versions to avoid inflated figures.
   2. The expected cost-per-click for these keywords: Find this in the Keyword Planner during your keyword research. Take an average of all keywords.

Now, you can start calculating. If you want my free budget calculator Google Sheet to help with this, follow me, leave a comment, and I’ll DM you the link.
First, calculate the potential monthly clicks:

Average monthly search volume of your keywords x CTR = Number of Clicks

I usually use 5% as a starting point for CTR, but if you have your own data, use that instead.

Next, calculate the budget:

Number of clicks x Cost-per-Click = Monthly budget

Now you have the minimum and maximum amounts for your Google Ads budget. While these are rough calculations, they serve as a great starting point. If you have any questions or need assistance getting started with Google Ads, feel free to reach out. I’m always happy to help!