[MUSIC PLAYING] What I love about Google ads is that they're really low risk to start off. You're not piling in money hoping somebody clicks. You only pay when somebody clicks, when your ad is actually successful. I can't emphasize this point enough. It's a great platform to get started with. You should look at your first few ads as a learning experience both for you and for Google.
Remember, Google wants to serve the most relevant ads as possible so that searchers are happy. That means it's going to take some time for Google to learn where your ad is best displayed. There are three things you're trying to understand as you're getting started with Google ads. The first, how much does it cost for you to get a customer.
Second, you want to understand how much traffic you need to bring to your site in order to get a customer. And lastly, how fast can you learn these two numbers. You'll get billed in cost-per-click or CPC. But what I want you to stay focused on is the cost-per-conversion, which is another way to say sales.
You might get a few clicks that generate a lot of sales, or you might get lots of clicks that result in no sales. Again, it's just best to keep it simple and focus on that cost-per-conversion, that cost to get a customer. I'll get more into my business metrics at the end of the course and how my ads are performing.
But I pay roughly $7 as my cost-per-conversion, which means I can spend $7 on ads and I'll know I'll get one customer. And I know, based on my product pricing, they'll be spending more than that, making my ad profitable. I could spend $42 in a day and get six customers spending $50 each. Again, profitable.
I could spend $1,000 in a day, which might sound crazy, but if I know I'm going to get 142 customers in that day, it's a no-brainer. So there are limits, of course, on how much money maybe I can afford to spend and the fact that there are only so many people looking for biltong online at any given time. As you start buying ads, you're going to start understanding your cost-per-conversion and how much traffic you need to get to your site before you get a sale.
All of these variables will inform your budgeting decisions. It's more than just how much money you have in the bank. Google has a few recommendations of starting as low as $5 per day and simply letting ads run for 30 days to let Google really understand who clicks on your ads. That $150 over a month is for you and Google to get a good grasp of your ad strategy.
But, remember, you're only paying Google when somebody clicks on your ad. Say you're bidding $1 per click for a specific keyword. After five clicks, your ads disappear for the day, and you'll have to wait for Google to start showing ads the next day. Ultimately, I like to speed things up so that I can learn faster. You can do the same thing with your Google ads.
Rather than spending $150 over a month, I would increase my initial spend to about $10 per day over seven days. That way, I've given Google enough money to run a substantial amount of ads each day. Learn what works, and then continue improving the next day. Increasing your daily spend will get you and Google learning faster.
Again, it rarely comes down to what you can afford to spend each day. Take a moment to think about how much you want to commit to your Google ads spend and over what time period. Write that number down and keep it visible. You might not see sales right away, so you'll be tempted to just stop running your ads altogether.
Stay within your means, but do your best to carry out that plan you initially committed to. As we start to explore search, display, and shopping ads, we'll continue to touch on budget with recommendations specifically for each ad set. At the end of the course, we'll come back to analytics and discuss budgeting again.
Now, let's get started building your first search ad. [MUSIC PLAYING]