A good click rate indicates that our ads are attractive and relevant to our target audience. To estimate the necessary budget for Google Ads we use the following formula Estimated budget = Volume Job Function Email List of searches per month x Average cost per click x Click rate Let's take a concrete example to better understand how this formula works Search volume per month Let's assume that there is a search volume of per month for keywords relevant to our business.
The average cost per click in the last monthsan average cost per click of euro for the relevant keywords. Clickthrough rate We estimate a % clickthrough rate for relevant keywords. Now we can calculate the estimated budget Estimated budget = searches x euro/click euros This is the cost needed to cover all relevant searches in a month for a Search campaign. How we divide the budget between various Google Ads campaigns Regarding the division of the budget between various campaigns we must also take into account the budget for display campaigns in addition to search ones.