When asking the question, how much does Google advertising cost, another one immediately comes to mind: is it possible to do something to reduce the price for promotion? Our experience shows that it is possible.
How to Manage Your Advertising Budget
The idea of controlling expenses is an special database integral part of marketing management. The advertising budget, like any other part of the plan, is not set in stone. It is a living indicator that must be constantly reviewed.
First, create a baseline or benchmark for your budget. This means you should record your plan expenses and costs so you have something to compare them to. Without this step, you risk overspending.
This doesn’t mean you should “freeze” your spending. Rather, these benchmarks are a signal that when you see overspending, you need to adjust your campaign size or delivery schedule.
Google’s advertising systems provide three ways to control your budget.
At the initial stage, it is recommend to choose the second option. Subsequently, the results of the campaign should be analyze and changes made.
How to adjust rates
Adjusting bids in contextual advertising is an important part of campaign management. Bids can be adjuste depending on the time of day, day of the week, geographic location, and type of user device. For example, if data analysis shows that more conversions occur during certain hours or days, bids can be increase during these periods.
For example, the traffic to a B2B company’s website increases on weekdays, especially during business hours, while traffic decreases on weekends. In this case, it is worth increasing the rates for display at a certain time, and decreasing them at other times.
Adjusting bids requires ongoing analysis and testing to determine the optimal parameters for each campaign. This allows you to achieve the meaning of organic traffic and how to increase it maximum results with minimum costs.
Methods for increasing the effectiveness of contextual advertising
Professional setup and management of contextual advertising differs significantly from amateur. A specialist clearly knows what factors he can influence. Which ones should be taken into account or adjust to.
What you need to know about external factors
These parameters can have a significant impact on the result. External factors include
For example, increase competition for certain keywords can lead to an increase in the cost per click. Seasonality affects the interests and behavior of the target audience, which must be taken into account when planning campaigns and budgets. Algorithm updates can affect the visibility and effectiveness of ads. Specialists constantly analyze the external environment and adapt their strategies to remain competitive and achieve maximum return on investment in advertising.
How to work with internal factors
Internal factors that influence the effectiveness of promotion include elements that the advertiser can control and optimize. We are talking about the following parameters:
- quality and relevance of advertising materials;
- campaign structure;
- selection and settings of the target audience;
- accuracy and completeness of the collect statistics on the project, depth of analysis of the obtaine data;
- the effectiveness of the pages that users land on.
An experience specialist can effectively aero leads adjust rates and manage budgets for campaigns targeting different product categories. For example, a client may simultaneously promote 8 product groups with different average checks, so each of them will require an individual approach to promote.
By regularly collecting data on the cost per click, he can change the settings and ensure that a certain amount is not exceeded. At the same time, he will have to take into account that, for example, to promote dentistry in Kyiv, the average cost per click in search advertising is almost 20 UAH, and in KMS – up to 10 UAH.
However, if you are not satisfied with the results of the work, and the prices for contextual advertising services, in your opinion, are too high, it is better to change the contractor and look for professionals who will help improve the efficiency of the advertising campaign and increase sales.
How to calculate a budget
We are ready to share our experience with you so that you can calculate how much advertising costs in Google.
Search Advertising Budget and Traffic Forecast
Analysis of potential advertising costs and an estimate of expected traffic can be performed based on the selected keywords and bids. It is important to consider not only current market conditions, but also to analyze past results, take into account seasonal fluctuations in demand and the behavior of the target audience.
But it is still possible to make a forecast. In the Google Ads Keyword Planner statistics section, you can specify the selected keys and get a table containing the request, frequency, and average click price. If you multiply the frequency by the average cost and clickability rate from your previous campaigns, you can get data on expenses for future advertising campaigns.
How to calculate the budget in KMS
When calculating the budget for media advertising, it is important to consider the goals of the advertising campaign, the target audience and the context of the ads. The budget may vary depending on the planned coverage, the chosen topic of the site and the advertising formats.
In this case, it is better to focus on the effectiveness, i.e. the cost of conversion. Usually, this is no more than 50-70% of the margin from one sale. Next, you need to calculate how many orders the company is ready to receive in a certain period, and multiply this number by an acceptable CPA.
