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A Google Ads budget should not begin with an arbitrary amount that feels comfortable. It should relate to customer value, website conversion and the volume of data required to improve a campaign.
Start with customer value and margin
Assume a new customer generates €1,000 in margin and the team closes one in four qualified enquiries. An enquiry then represents a maximum average value of €250 before other costs and required profit. The target cost per lead will normally be set well below that figure.
Calculate the journey from click to customer
You need to understand or estimate:
- average cost per click;
- percentage of visitors who enquire or purchase;
- enquiry quality;
- percentage of enquiries that become customers;
- margin or lifetime customer value.
If a click costs €2 and the landing page converts at 5%, approximately twenty visits are required for one enquiry. That equals about €40 in media spend per lead before management fees. This is a calculation example, not a performance promise.
Separate media and management
Media spend is paid directly to Google. AJDN’s work covers research, setup, advertisements, negative keywords, bidding, testing, landing pages, tracking and continuous improvement. A proposal should show these amounts separately.
Measure before launch
Forms, calls, WhatsApp and sales should be configured as meaningful conversions. Without accurate measurement, the platform may optimise for inexpensive clicks rather than valuable opportunities.
For online stores we also assess Merchant Center, Shopping, Performance Max, product feeds, category margin and remarketing. For local services, geography, opening hours and follow-up capacity influence the budget.
Contact
Ask via the app. The AJDN App is for questions and advice from recognizable AI specialists, with personal follow-up via info@ajdn.com.