I'm new to Adwords or PPC - how much should I spend each month?

Great question although it's a little bit complex.  The thing with Google Adwords is that you are trying to capture attention and ultimately sales from people "already looking" for what you offer.

For most it's not about eyeballs and simply getting clicks for the sake of getting clicks it's putting your ads in front of people most likely to purchase.  For starters you'll want to start out bidding on keyword phrases that are very specific to your business.

"Sneakers" would be a bad choice for a webstore that caters to the outdoor trail running crowd.

"Lawyer" would be a bad choice for a personal injury firm.

By "bad" I mean wasteful, there is very little buyers intent from keywords that only contain 1 word.

Someone who types in "Inov-8 F Lite195 sneaker" is much more likely to make a purchase than someone who types "sneaker" into the search engine.

With that said you want to allocate enough budget so that you maximize exposure in front of these targeted keywords.  If you don't spend enough you may miss sales by simply not having your ad shown enough.  Spending too much because you insist that your budget gets spent each and every month means you're now buying clicks on keywords that are not likely to convert.  Certainly you can do this for mindshare or branding but it's not the main reason businesses use search.

The number you have in mind for Search is just a number you came up with that works for your bank account.  It might be accurate or it may not be.  You want to allocate budget to align with demand.  Back in 2008 when I started learning Adwords at my day job the company was spending $4,000-$5,000 per month.  They sold tax software to large corporations.  Yes it's "tax software" but bidding on "tax software" places there ad in front of people looking for things like TurboTax.  Spending several thousand per month was very wasteful and not needed.

My job is to help you find the right budget and the best way to do this is with a test campaign on a smaller list of very related keywords.  If you're brand new to Search, you really have no idea what the budget is until you start advertising a little bit.

The budget you have in mind could be much more than necessary and I always point that out to clients if that's the case.  I don't spend money for the point of spending money.  Google is rich enough!





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