The required budget depends on the competitiveness of the industry and products . Of course, initially, the advertiser, after an initial analysis by a Google Ads specialist, determines the total and daily budget. It's recommended that the daily budget be selected based on the advertising goals and the average amount the advertiser wants to spend on each day and each ad. A daily budget that's too low may be exhausted halfway through the day, resulting in ads ceasing to display and not achieving the intended results.
By defining the monthly budget at the very beginning, it is easy to determine the daily budget. Simply divide the value of the previously established monthly budget by 30,4 (i.e. the average number of days in a month).
Billing model for a product campaign
The choice of payment model is most often left to the Google Ads specialist, who will best tailor the appropriate models and their rates, depending on the advertiser's stated goals. In Google Shopping, we can choose three goals, each with its own payment model:
- CPC billing model
Maximize clicks within your budget
We will choose this goal if we want to maximize ad clicks and achieve the highest possible number of website visits, which often leads to more clicks on ads for products with low traffic in order to maintain a certain level of spending. - eCPC billing model
Maximize conversions while maintaining bid control
However, if our goal is to maximize conversions, we recommend enhanced CPC, a model in which manual bids are automatically adjusted up or down to achieve the highest possible number of conversions for each click. - ROAS billing model
Maximizing the number or value of conversions while maintaining a pre-defined return on advertising spend
When our goal is to maximize the number or value of conversions, assuming an expected return on the amount allocated for advertising. ROAS bidding automatically sets bids to allow the advertiser to maximize conversion value within the average return on advertising spend.
Depending on whether the advertiser aims to attract users to their website or increase revenue by maximizing conversion value, the appropriate objective is selected. Before making a decision, the Google Ads specialist analyzes many different variables and conducts a conversation with the advertiser to best understand the specifics of their business and their goals, both business and marketing-related.
How to define the objective of an advertising campaign on Google Shopping?
The campaign objective we choose will have a huge impact on the subsequent analysis and interpretation of the advertiser's results. It's important to consider the company's primary goals from the outset, in this case, the online store, and whether the brand is already well-known or has just entered the market.
The goals and billing models presented above can be used both at the ad group and campaign level, so we do not have to decide on one single goal and billing model for the entire advertising campaign, i.e. for all products.
Appropriate billing models can be adjusted depending on the product group we want to advertise.
How to determine the budget for a shopping campaign?
The budget for a shopping campaign is typically determined by the advertiser at the outset. However, advertisers sometimes decide to adjust their budget after reviewing the initial offer and after initial discussions with a Google Ads specialist.
An initial consultation allows both parties to better plan the campaign structure and implementation. Through this initial conversation, the Google Ads specialist can better understand the advertiser's industry, clients, and other specific aspects of the business.
The advertiser, on the other hand, receives a vast amount of data and information about the performance of Google Shopping ads, the best tactics, and suggested changes or adjustments to the website to achieve the best possible results. After carefully analyzing the available information, it's time to determine both the total (monthly) and daily budget.
Of course, setting a budget doesn't necessarily mean it can never be changed. Google Ads specialists consult with advertisers on an ongoing basis to respond to high and low seasons, for example, and other variables that impact the advertiser's business.
