Getting Started with Google Ads: How to Determine Your Test Budget

If you’re considering launching a Google Ads campaign, you may be asking yourself, “How much do I need to invest to test this out?  Is $100 enough or do I need thousands?”

It’s an important question and I hear it all the time from prospective clients. Unfortunately, this question is impossible to answer without further research.  For example, we need to answer the following:

  1. Which keywords will you be targeting and how much do they cost per click (CPC)?
  2. What is the time frame for your test? Do you need to see results in weeks, months, or a year?
  3. What is your sales process and typical sales cycle?  Do customers buy the same day they search or does it take months before a purchase is made?
  4. What are your typical sales conversion rates?

Let’s go through an example and at the end, you’ll know how to estimate a reasonable test budget for Google Ads (aka AdWords).

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