How Much Should A Small Business Spend On Google Ads

SF Digital Studios

How Much Should A Small Business Spend On Google Ads

This depends on a lot of factors. I’ll share some advertising facts I’ve learned over the years. They may help you make your decision.

Your Advertising Budget Should Be Varied

You don’t want all your eggs in one basket. But you also need to spend money on advertising channels that generate revenue for you. When you get started, you should try out many different options to see what works best for your business.

But It Shouldn’t Be Too Diverse

Because in general, you will find that 20% of the ads you show make 80% of the revenue. To know about ads, you need to track and measure your Google Ads campaigns. So drop the non-working ad campaigns.

Sales Are Essential To Success

You can hide a lot of problems in business if you can get sales. So your marketing budget should reflect this fact. If you can spend a dollar to make a profit, spend it. If your ad campaigns are run efficiently, then more investment will lead to more growth. If they are swollen, you will only bleed money.

Google Ads Is Not The Best Choice For All Businesses

Don’t get me wrong. Google Ads is a great platform and you should budget to test it out. But it’s not for every business. You may see better results on Facebook Ads. Even Bing Ads is competitive in some sectors. But don’t assume anything. Test different ad channels and see what turns out.

With all that said, a good advertising budget is about 10-20% of the revenue. Invest more if you want to grow faster and you know what you’re doing. But be careful. Growing too quickly can cause problems. And throwing money at ads without understanding metrics is a good way to lose money.

SF Digital Studios

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