Public Service Announcement!

Stop being cheap with Google Ads! You have to pay to play!

I’m going to show you what you should spend and why you should spend it.

Before I do that, I will explain what Google Ad Words is and how it is beneficial.


What is Google Adwords?

What I like about Google Ads is that it’s like a business within itself.

Imagine you own a restaurant and you had to pay for each person to enter your restaurant. When they are in your restaurant you are hoping to sell them something so that you can make a profit off of what you paid for their entry into your business.

This is what Google Ads does.

Google allows businesses to bid for their advertisements to be placed when someone makes a search that is relevant to what products or services the business is selling. You ever search for something on Google and the first thing that you see is a piece of advertisement?

For example, I searched “beard oil” on Google and the first four results that came up were companies that sell Beard Oil.

Businesses bid on relevant keywords that their customers will search. Think of Google Adwords as an auction and businesses are competing to become number one.

The higher you are in the results on Google makes you more trustworthy, credible, and more of an authority to your customers. These factors increase traffic. Thus, increasing conversions.

Your ranking depends on the highest bid and the business’ quality score.

Quality Score is the quality that Google ranks your business based on its keywords and the relevance of their PPC ads. The formula for Quality Score is the Cost per Click x Maximum Bid.

The business with the highest quality score will be the number one result.

These three beard oil companies are bidding against each other to get their Ad to become number one on Google. Bulldogskincare.com has the highest quality score, therefore it appears first in the search results.

Why is it Important?

It makes you more profitable.

When consumers are conducting searches on Google it is most likely to buy something. It only makes sense that it charges businesses for the number of customers it can bring.

You only pay when a user clicks on your Ad. So when a customer searches up a keyword that you are optimized for and you have the highest quality score the more likely a consumer will click on your ad, increasing conversions.

That’s why choosing the correct keywords is so lucrative and why Google Adwords can be expensive sometimes.

Gives you Data

Google Adwords isn’t all about making money but gathering data as well. Data is one of the most valuable benefits Google Ads provides. From Google Ads, you can gather data about your customers.

You can use the data that is collected by Google to better understand your target audience. You will be able to see what keywords are effective and which ones aren’t doing so good.

This data makes you sharper as a business and as you gather more data you learn how to appeal more to your audience.

How much do you need for Google Ads?

Many businesses underspend for Google Ads. The Cost per Click varies from industry to industry because different industries value a lead more than others.

For example, the suggested bid for some insurance companies is about $20-$40. This is because a client to an insurance agency is worth 1000% more than what they paid for the lead, so return on investment is more than an industry that has cheaper keywords.

I recommend to spend AT LEAST $2,000 a month on Google Ads. Starting with $2000 allows you to buy yourself into the “poker game” and you will be able to scale your budget from there. If Google Adwords is done strategically. The more strategic your more the better the chance you will be able to outshine your competitors.

How to be strategic?

  • Show Ads when your target audience will see them.
  • Choose the most valuable keywords.
  • Choose the correct bid strategy
  • Test, test, test!


Why is it vital to have the money?

Imagine sitting at a poker game and not having enough for the minimum buy-in. It’s not that anything less than $2000 isn’t enough, it’s just a waste of money. It’s the same with Google Ads.

I’m going to go further in detail with an example:

John is a realtor and has a monthly Google Ad budget of $600 dollars and his cost per click is $50. He has enough for 12 clicks.  

Meanwhile, Riley, his competitor is spending $5,000 a month and can get 100 clicks. Let’s break it down. The average conversion rate in 2018 for Cost Per Conversion (CPC) was 3.75%.


12 clicks x 3.75% Conversion rate= .45 conversions


100 clicks x 3.75% conversion rate= 3.75 conversions

John wasn’t able to get any conversions while Riley was able to get 4. The more money you put in the better your return on investment (ROI) will be.

When I say the more money you put in that doesn’t mean to put in an absurd amount of money without having a strategy. REMEMBER you are bidding and like any auction you have to be smart with your money.

It’s imperative to spend the right amount of money on your Google Ads. If you don’t you are at risk of wasting your money on Ads.

Don’t be “THAT GUY”