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How to suggest google ads budget to clients?
Posted by on August 25, 2021 at 5:59 amHello,
Let’s say your client asks you how much should be the ad spend to get top 1st position rankings in Google Search results for a specific location…
How would you go about to determine the ad budget for this client?
Here’s the process I follow (I’d love if you guys can share your feedback, suggestions and your processes):
1. I open the google ads keyword planner
2. enter the client’s keywords there
3. Look at the “Top of page bid”
4. go to “Forecast” and check the total number of clicks for next one month
5. Multiply this total number of clicks with “top of page bid”… and that’s the ad budget that I suggest my client to use.What are your thoughts on this? Is this accurate? Is there a better way to calculate the approximate ad budget for targeting the 1st position in google search results?
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3 Replies
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I would suggest one month of testing on some estimated budget that comes for example from keyword planner or your experience with similar clients. Then after one month I would present full mediaplan based on results. That way, I am presenting transparent and fair estimations to the client based on results and spend for the last months.
I used to give estimations only based on the keyword planner, but as this tool happen to give very inaccurate results I prefer to do as I mentioned above.
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Setting a budget based on the cost of getting 1st position doesn’t make much sense to me. The primary goal should be improving KPIs like CPA/ROI. If your competitors are also bidding aggressively for 1st position, then the only winner will be Google
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After doing exactly this for hundreds of accounts over the past few years, I think it’s more of an art than a science. It’s usually quite easy to know how much of a budget will work, but only with a significant amount of experience with similar accounts and geographical locations.
Google Keyword Planner will only get you a certain amount of the way there. I wouldn’t trust the numbers to make an actual proposal, and neither would I really use “top 1st position rankings” as your primary metric. So much depends upon the client’s unique goals and ability to spend.
And there’s just some things you learn that you just can’t get from Keyword Planner. For example, I haven’t seen *any* nationally targeted campaign that even begins to work decently until you’re in the $2-3k/mo spend minimum…and probably more like $5k minimum in the US. However, the other way around, for hyper local campaigns I have seen $500/mo budgets bring literally six figures a year of revenue for small businesses. Keyword Planner is just not going to tell you this.
I think usually it’s better to work with what the client is able to give you (”how much *can* you spend”) and then tailor your strategy to make the most of what they have.
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