How to Optimize Google Ads Budget?

Google Ads is a powerful advertising tool, especially for small businesses. When you want to use Google Ads, the first question that will come to your mind will be; “How much should I spend on Google Ads?” A great question to ask before starting with Google Ads is: In this blog post, how should Google Ads budget optimization be managed when you want to benefit from Google ads? We’re sharing all the tips with you.

Start with a Test Budget!

When you’re new to advertising, you may not be entirely sure what will and won’t work. In your first test, you can get an idea of which advertising messages will be useful for your ad in the target market and also predict which keywords are or could be converting into qualified leads. However, you can easily test which content attracts potential customers based on the clicks on the landing pages you have prepared. In this way, you can achieve the best results with this test.

1- What should your test budget look like?

In order to optimize Google Ads budget, you can apply a method more or less like this; determine the number of keywords you want to test and calculate the cost per click and multiply it by a minimum of 100 clicks. You will need at least 100-200 clicks to convert from the keywords you have created. In this way, you will more or less determine a Google ads budget optimization and you will be able to achieve the desired conversions.

For example, if you plan to test 10 TL with a cost-per-click of 1 TL, we recommend budgeting between 1,000 – 2,000 TL for the test. With this first test, you will be able to easily see keywords, ads and conversion rates from landing pages.

2- Determine Your Budget in the Next Stage!

Successful advertisers do not impose limits on their budgets because they know that effective advertising is one of the best investments they can make in their business.

Let’s assume that by investing 1 TL in Google Ads, you have the chance to earn 1.25 TL, 2 TL, or 5 TL in return. It will be useful to focus on return on investment, not cost. If you want to be a dominant advertiser in your target market, we recommend that you focus not only on managing costs, but also on maximizing your energy, return on investment (ROI) and revenue from advertising.

Focus on Cost Per Acquisition!

You should not only focus on cost per click (CPC). Many businesses focus solely on reducing CPC when running Google Ads campaigns. In reality, to improve the Quality Scores in Google Ads, you can first obtain cheaper clicks by targeting ads specifically at your audience. This is just one of the approaches that can be followed.

Another aspect is to explore different ways to make the Google Ads budget optimization more efficient. What we mean here is to focus on Cost Per Acquisition (CPA), not on Cost Per Click (CPC).

How to Calculate Cost Per Acquisition?

Cost-per-acquisition (CPA) bidding is a method that helps you inform Google Ads of the amount you want to pay for a conversion. Cost-per-acquisition (CPA) bidding can help you reach users who are more likely to complete a transaction on your website. This bidding method is part of the Conversion Optimizer.

The CPA offer focuses on maximizing conversions instead of clicks. You will still pay per click, but Google Ads automatically adjusts your bids to help you achieve more conversions.

Therefore, if you want to truly dominate your competitors in Google Ads, you need to focus on maximizing Google Ads budget optimization. This is a basic condition for the most optimized use of the budget. In summary, optimizing the budget should not mean cutting the budget. If a small increase in the budget leads to a high benefit, it would make more sense to increase the budget for optimization.