If you want to invest in Google Ads without burning your advertising budget, you first need to understand how much money you need, depending on your business.

Thousands of companies worldwide are already generating hundreds of new clients each month by investing in Google advertising.

So, to ensure you can also achieve the same results, I'm going to reveal how much you need to invest in Google Ads at a minimum.

Your investment will depend on 3 key fundamentals:

1- The average transaction size:

This is the average amount of money you earn from each new client.

This is important because depending on the average transaction size, acquiring an additional client may cost you accordingly.

For example, if each client generates $250 in profit for you, then a healthy investment budget might be $125 to acquire each new client.

If the campaign is focused on generating 10 new clients, a good budget might be $1250.

This gives you the best chance of achieving your goal while maintaining a good profit margin.

2- Search volume or demand:

This refers to the number of people searching for what you sell on search engines (Google, Safari, etc.)

If there is no search volume, then it doesn't matter how much money you invest, because the number of people searching for what you offer on Google is low.

You can use tools like SEMRush or Google Keyword Planner to check if there is demand for your business's search terms.

For example: Lawyer in Panama, Plumber in Lima, Clinic in Bogotá, etc.

3- The quality of your ad:

Fortunately, Google does not prioritize advertisers who pay more but those with the best ad. But how does Google define a good ad?

Since these types of ads are primarily text-based, copywriting plays a very important role in their performance.

Good ads provide a good user experience because they are clear and persuasive. This not only increases the number of clicks they receive but also reduces the advertising cost and helps Google understand that your ad is “good” (because people interact a lot with it).

The same happens in the opposite case, if you have a bad ad with unclear copy that doesn’t capture attention, Google will start to show it less to improve user experience.

So make sure your ads are persuasive and cater to your audience's needs.

Conclusion:

To determine the amount of money you need to invest in Google Ads and achieve positive results, you'll need to consider: the average transaction size from your clients, search volume, and the quality of your ad.

Contact us for personalized help with designing your ads and ensure your investment is a success.