How to decide on a Google Ads budget?

Last updated on September 8th, 2021

Your budget strategy heavily depends on the industry you're operating in. Banking, insurance, and automotive verticals usually generate the most expensive costs-per-click (CPC). 

But even for "cheaper" industries, the CPC might vary depending on the kind of competition you have, the keywords you use and the location your ads show

CPC

The cost-per-click is calculated by using the following formula: CPC = Total Cost / Total Clicks

For more information about CPCs, please read our guide on What CPC can I expect?


As a general rule, Google Ads will always calculate your monthly budget as per the below formula. 

Monthly Budget Formula

Total Monthly Budget = Daily Budget x 30.4

Please be aware that this calculation also applies in campaigns that run less than 30 days.

Say that you have a monthly budget of 500 EUR for your campaign. You can divide the budget by 30.4 days (because some months have 28 and 31 days), giving you a total daily budget of 16.44 EUR for your campaign. This is an easy way to estimate your daily budget.

We recommend using a higher daily budget (15+ EUR) to get your ads seen throughout the day. If you choose a lower daily budget, you might reach that budget in a few hours and then your ad will stop showing. By monitoring your costs per day, you can then decide to pause costly but ineffective keywords or to increase your budget.


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