By volume, Google Ads is by far the most popular digital advertising platform. If you run a business or manage a medical practice, you may be interested in leveraging Google’s reach to accelerate your growth. But how much should you actually spend on a paid advertising campaign to connect to the right people?
It’s a question that can feel a bit like trying to find a needle in a haystack. Everyone’s business is different, and there’s no magic number that works for everyone. We’ve worked with clients who spend as little as $500 per month to connect with patients, and others who invest tens of thousands per month. Finding the right number depends on your specific goals.
In this guide, we’ll break down the process of creating a Google Ads budget so you can feel confident, informed, and ready to get that return on your investment.
Before You Start Google Ads
Before you start crunching numbers and designing ads, it’s worth taking a moment to figure out if Google Ads is the right tool for your business. Ask yourself these key questions: Do you have a clear goal? Is there an existing demand for your service? Is your website optimized to convert visitors to patients? Are you prepared to manage the campaign and track results?
If you answered “No” to a few of these, it doesn’t mean Google Ads aren’t a viable strategy. You may need to refine your goals, improve your website, or conduct more market research before you put money into a paid advertising campaign.
Addressing these points before you invest in Google Ads will significantly increase your chances of success and ensure your ad budget is spent effectively. Google Ads is a fantastic engine for growth, but you need to make sure you’re prepared.
First Things First: Choosing Your Budget
The key to a successful Google Ads campaign isn’t just about spending money; it’s about spending it strategically.
The best way to figure out your budget is to think backward! Instead of saying, “I have $5,000 to spend, what can I do,” it’s better to ask, “What do I want to achieve, and how much will it cost to get there?”
What Is Your Goal?
This is the most important question you’ll ask yourself. What do you want your ads to do for you? Do you want to:
- Get more potential patients to your website?
- Generate leads (like new patient forms submissions or phone calls)?
- Increase awareness for a clinic or a specific procedure?
For example, maybe you want to increase new patient bookings by 30% in the next quarter. That’s a clear, measurable goal.
How Much Is That Goal Worth to You?
Now, let’s put a value on that goal. For example, imagine a mental health counselor who charges $150/session, and an average new client will schedule ten sessions over the course of a year. This means a new client brings $1,500 (150×10) of revenue. The counselor may be willing to spend up to a third of this value ($500) on obtaining a new client — this is the cost per acquisition. So, if her Google Ads campaign spends $1,000/month and brings in two new clients per month, the campaign is effective according to her goals.
By understanding the value of your goals, you can figure out what a reasonable cost per acquisition (CPA) is for your business.
Using Google Keyword Planner To Research the Average Cost Per Click in Your Industry
Google has a free tool called Google Keyword Planner. You can enter keywords related to your business (think about symptoms/treatments or specialty words like “dermatology”) and it will show you the estimated cost-per-click (CPC) for those keywords.
CPC is exactly what it sounds like: the amount you’ll pay each time someone clicks on your ad. An average CPC of $5 means you’ll need to pay an average of $500 to have 100 people click on your ad. This cost can vary wildly depending on your industry and how competitive your keywords are.
Tools like Semrush and others offer even deeper insights, allowing you to see what your competitors are spending and which keywords are working best for them.
Benchmark a Conversion Rate
A conversion rate is the percentage of people who click on your ad and then complete your desired action (like filling out that contact form). When you’re just starting out, you likely don’t have your own data to work with. In this case, 2% is a good assumption for most industries. (Many of our clients achieve a conversion rate higher than 2%, but it’s a good place to start.)
As your campaign runs and you collect data, you’ll be able to see your actual conversion rate and adjust your budget accordingly.
So, let’s do some quick math with our 2% assumption. If you want to get one conversion (one lead), you’ll need 50 clicks (1 / 0.02 = 50).
Determine Your Monthly Google Ads Budget
Define your monthly goal. How many leads, sales, or clicks do you want to get in a month? Let’s say you want to get 10 new leads per month.
- Calculate the number of clicks you need. Based on our 2% conversion rate assumption, you’ll need 50 clicks to get one conversion (50 x .02). So, to get 10 new leads, you’ll need 500 clicks (50 clicks/conversion x 10 conversions).
- Find your estimated total cost. Using the CPC you researched, let’s assume the average is $2 per click. Multiply the number of clicks you need by the CPC: 500 clicks x $2/click = $1,000.
- That’s your estimated monthly budget. In this example, you’d be looking at a starting monthly budget of $1,000.
- Now, to get your daily budget, simply divide that by 30.4 (the average number of days in a month): $1,000 / 30.4 = ~$32.89.
This daily number is what you’ll enter into Google Ads, and don’t be surprised if your daily spend fluctuates a bit. Google will optimize your campaign spend for days of the month when you’re more likely to get clicks and conversions, like when search traffic is higher or when it predicts higher ROI for your ads. This means that on some days you might not reach your average daily budget, and on others you might exceed it.
Optimizing Your Budget
Think of your first budget as a test. It’s a starting point to gather real-world data about your business, your ads, and your audience. You may discover that your ad budget is too low to get the conversions you need, or that running ads isn’t viable for your particular goal with your current business model.
If you find that your cost per conversion is too high, it doesn’t mean you should give up! It means it’s time to refine your strategy. You can work on improving your landing pages, writing more compelling ad copy, or adjusting your keywords. All of these things can help lower your cost and increase your conversions.
Baker Marketing Understands Google Ads
At the end of the day, we understand that a Google Ads budget isn’t just a number — it’s an investment in your clinic’s ability to help more people. By taking a data-driven approach, you’ll be able to build a campaign that truly makes a difference in your area by connecting those in need to your services.
Our team at Baker Marketing has managed millions of dollars in paid advertising, and we’ve helped countless healthcare providers, big and small, achieve their growth goals. We’re here to help you pinpoint the best advertising tactics and build a budget that works for you. To learn more, contact us today – we look forward to helping your practice grow.