Kaushal has helped hundreds of Google advertisers succeed in their online advertising campaign.
Author of Google Adwords Management: Time Saving With Adwords Editor ISBN: 978-1-62050-803-9Available at Amazon.com bookstore
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How to plan Budget for Google Ad Campaign?

 

In order to plan budget for any advertisement, you need to assume certain data. Google Google Adwords it is even more important.


If you start a campaign without predefined target or objective, you are in big trouble.


Typically, one advertises for:

  • - generate leads
  • - generate sales

 

If you're advertising for generating leads, make 2 assumptions:

  • Estimate CPC from Google Keyword Tool. Say E.g. 14 per click
  • Out of every 100 visitors to your website, certain percentage converts. For e.g., every 2 leads out of 100 visitors. i.e. 2% conversion rate. Assume an average conversion rate.

 

Assume that you want 50 leads per month.

 

Now calculate reverse to get Google advertising budget.

To get 50 leads you need, 50 x 100 / 2 = 2500 visitors
To get 2500 visitors to the website you need to spend 2500 x Rs. 14 = Rs.

 

Your Adwords advertising budget should be Rs. 35000/-

 

If you're advertising for sales

 

Use similar data but instead of assuming conversion % for a lead, assume conversion % for a sale. Conversion % for a sale is always lower then conversion % for a lead.

 

Calculate the advertising budget in similar manner as discussed above & get Adwords advertising budget.

 

Hope this helps!

 

 

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=> Leads and Orders Generated For You by Pay per Click Experts <=
..Now Managed by Kaushal Gandhi
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Thank you for reading my article.

 


(Kaushal Gandhi)


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Analysing Low Quality Score in absence of an Ad
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How to plan budget for Google Ad Campaign?