#40 – How much should I spend on Google Adwords advertising?


A lot of new business when they get started
online with advertising they always worry or are concerned about how much money they
should spend online with advertising. Like, what is that advertising going to produce
for me is it going to be a waste of money or am I going to just be throwing money down
the toilet whatever it is, so in this episode let’s talk about your budget, your advertising
budget. Welcome to Insider Internet Success, in this
video I have a question from our subscriber Hamil Sha who owns a pharmacy in the UK, and
he says: “How do you work out the best spend on Google Adwords?” How do you know how much
money to be putting in your advertising? Here’s the thing, if you are setting up an
advert online, and you already have a website and on that website you are selling a product
for a hundred dollars or a hundred pounds and out of every hundred visitors you that
send to your website one of them buys. That means for every hundred persons, you get a
hundred pounds, so then if you would put a hundred pounds into advertising you would
break even, you wouldn’t make any money. You put hundred pounds into advertising you get
a hundred visitors let’s say, and then you have one person buy and you make a hundred
pounds. It’s very unlikely for that to happen, when you spend a hundred pounds you’d get
a lot more clicks than just a hundred clicks so let’s just say that for easy sake.
So that means that if you don’t yet have a conversion on your site you first need to
test a conversion on your site, and the way to figure out your conversion on your site
with advertising is to start very slow. The ultimate thing is testing, I would set up
an ad I would 5 or 10 pounds a day on your ad to see how many clicks it’s giving you
and out of all the clicks that you’re getting on your site, how many sales are you getting?
Or let’s say you do 10 pounds or 10 dollars a day for 5 days, that is 50 pounds and out
of that 50 pounds you get a thousand clicks. Out of that thousand clicks how many of them
are buying? Are you getting 10 sales? Are you getting 5 sales or 4 sales? Then you work
out what it’s costing you per click if you like, or how many clicks it is taking to get
you a sale and then you work out how much in total you have received in sales and how
much you have spent on the ads and you work out if you got a profit. If you got a profit
you keep doing it. Now the way Google Adwords and other advertising
platforms like Facebook advertising works is the more time you stick with that same
ad, the cheaper it becomes, the cheaper the cost per click becomes. Your job is to keep
improving the cost per click by getting it to decrease. If you have your cost per click
decrease it means you are getting more clicks out of the money that you’re spending. If
you are getting more clicks to your website it is very likely that you’re going to get
more sales right? So down to your question, “How much money
do I spend on Google Adwords or any other advertising platform?”; is first you need
a test there’s no way to know without testing, because everybody’s products and services
are different and if they’re not different, everybody’s website and the way they set up
their website is different. So ultimately what you need to do is start testing, and
start testing small, start testing at 5 or 10 ten pounds or 10 dollars a day, do that
for a week then get your results and analyze your results how many actions are you getting?
How many clicks and sales and revenue are you producing from this? If they don’t buy
immediately how are you capturing those visitors? What are your visitor costs?
All these things can be worked out in one week, the second week you can wrap up your
advertising, and so forth the third, fourth and fifth week, until you are spending a good
amount of money and producing a good amount of sales. Every single day this will happen,
then you don’t have to do anything else you just have to rely on the adverts really.
So the simple thing is to test start with 10 dollars a day and be really specific about
who you are testing, get some results and then it’s all easy.
Now if you would like my help to sit down with you and strategize a campaign for ads
or for setting up getting visitors from ads, if anybody would like some help on that we
can sit down and talk about how specifically you could use ads to get visitors and how
you could look at your website and increase the conversions on your website to get more
sales out of them or more inquires or leads or more visitors. If you want to do that I
would be more than happy to sit down with you and have a strategy session and in that
strategy session we talk about different methods and business models you can apply and I can
give you some tips to get started. If you want to do that there is a link below
the video where you can click to book a strategy session I would be honored and willing to
speak with you, and of course if you enjoyed this video and you have questions or you want
to comment below. Do whatever you need to do, hit the like button and leave a comment.
I look forward to engaging with you I look forward to hearing from you. So it is your
turn now do whatever you need to do and I will speak with you soon.

13 thoughts on “#40 – How much should I spend on Google Adwords advertising?

  1. Should I run some kind of sale or special when I run a google adword campaign? Or would it be okay to just direct customers to my home page just for my service only?

  2. Nice video! well i'm from India n i'm newbie in Online Marketing. i want to test Google adwords for the first time so my question is how much money should i spend on my first ads on Adwords?

  3. You are the best. No dancing around on the question. Straight to the point with clear and precise and explanations. Thank you!

  4. How do I find out if my click through ratio is acceptable? Also, I'm getting clicks, but nobody is buying even though I am using placements to hone in on my target market. How do I figure out what is wrong with my site? The product is good and valuable and inexpensive.

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