Matching Your Budget to the Right Google Ads Campaign

I understand how overwhelming it can be to launch your campaigns for the first time. There are just so many options. How do you know which campaign is a good fit for your budget?


Each campaign type serves a unique purpose and aligns with different advertising objectives. For instance, search campaigns are ideal for showing text ads on search results, directly targeting users actively looking for products or services. They usually work best.


On the other hand, display campaigns allow for visual ads across a vast network of websites, which is great for building brand awareness. Video campaigns on YouTube engage customers with dynamic content. App campaigns for businesses with mobile applications are tailored to promote app installations across multiple channels. And let’s not forget shopping campaigns, which showcase product listings directly on Google, a boon for e-commerce ventures.


Each type of campaign offers different benefits and requires a distinct approach. Before starting a paid campaign, it’s crucial to understand these options to reach your target audience and achieve your business goals effectively.


So, which campaign type and bidding strategy is right for you?



Note! When I say minimum budget, I mean that this is the most likely amount of spending to see some kind of results. You have to understand that your case can be different (keywords, country, business niche, etc.). If you planned a lower budget than I specified, don’t be discouraged to try it anyway. There is no one rule when it comes to Google Ads.



Don’t want to read the whole post? Here you go:


campaign types and bidding strategies

Start with Search Campaigns

Search Ads are probably the most popular out of all campaign types. They also outperform others most of the time. Usually, I recommend starting with Search Ads to get ROI faster.

You can also control your cost by bidding only on a few keywords and increasing your spending (or adding more keywords) once you see conversions coming in. Any business, small or large, can use this campaign type.

As for the bidding strategy, you can choose:

  • Manual CPC
  • Enhanced CPC
  • Maximize clicks
  • Maximize conversions
  • Target impression share
  • Target CPA
  • Conversion value + target ROAS


Minimum budget

You can start with as little as $1/day. It probably won’t get a lot of clicks, but you can do it. If we’re talking about getting results, well, this depends on many factors, such as keywords, business vertical, country, etc. Usually, you should expect to spend at least $300-$700 dollars for a small account. But don’t take it as a recommendation. Look at your results and see if the spending pays off.

Your goal is not to spend a certain amount of money. You want to earn more money. Once you have campaigns that perform well, the sky is the limit.


Bidding strategy

You can start with manual bidding or automated strategies. I would probably avoid target impression share unless you want to outrank a competitor.

To start with automated strategies, you need to have conversions in the account. Not only set up but a decent number of them.

Google recommends having at least 30 conversions per month per campaign to switch to automated strategies such as target CPA. I would recommend having a lot more, probably between 100-200. The more, the better, as algorithms need data to learn. The only reason to start with fewer conversions is if you can get more conversions fast. This means that your campaign gets five conversions a day constantly, and Google can learn quicker and be more precise. Otherwise, you risk wasting a lot of money.


If you don’t have conversions at all, start with manual bidding. If you have just a few, I would also recommend sticking to manual CPC, trying to scale those and then testing automated bidding strategies.




When to use Display Campaigns?

I’ve found that Google Display Ads play a pivotal role in reaching a broader audience. Unlike search ads that target users actively looking for specific services or products, display ads can capture potential customers’ attention as they browse various websites and apps within the Google Display Network (GDN).


Display ads are particularly effective for brand awareness and remarketing. They allow me to present my brand to users who may not be actively searching but are likely to be interested in my offerings. Here’s how Google Display Ads can align with different business goals:

  • Prospecting: Attracting new customers by showcasing the brand to a wide audience.
  • Brand Awareness: Increasing visibility and recognition of the brand.
  • Retargeting: Re-engaging users who have previously interacted with the business.


Moreover, when search campaigns are not yielding the desired results, especially in niche markets, a well-designed banner ad can stimulate branded searches, thereby enhancing search campaign performance. The affordability and extensive reach of Google Display Ads make them an indispensable tool in my digital marketing arsenal.


Display ads are mostly not just about immediate conversions; they’re a tool for building brand awareness and creating a visual touchpoint across various websites. That’s why they rarely have a good ROI. Keep this in mind.


Retargeting is another aspect of Display Ads that I find incredibly effective. By targeting individuals who have previously interacted with my site, I can remind them of my offerings and nudge them toward conversion. When people talk about Display, sometimes they only have in mind Retargeting campaigns, which usually perform great. But don’t mix those up.


Important! Use Display campaigns only if you have reached your limit with Search Ads. Unless you’re starting with big budgets and aggressive strategy, then you can do both at the same time. Search campaigns will always be your best bet.


Minimum budget

This campaign requires a bigger budget. The reason is that you target a broader audience that you think might be interested in what you have. But most likely, a majority will not. But they still can click on your ad, costing you money. It is also hard to create that audience right off the bat. It might take some trial and error. All this is not cheap.

You should expect to spend at least $5000 per month. Even though you can pay per click as well, and you might get many of them, the willingness to convert is very low. The display conversion rate can be up to 10x lower, meaning your CPA might be 10x higher than that of Search campaigns. You can do the math.

As I mentioned, Display campaigns have other benefits, such as brand awareness alongside conversions. But you need to evaluate which one is the most important for you at any given time.

You will need a smaller budget for retargeting campaigns, as they are based on your website visitors unless you’re on However, for the rest of us, even $10/day might yield good results from the retargeting campaign. Users are already familiar with your brand, and a small nudge might be enough to convert.


Bidding strategy

You can use the same bidding strategies as with Search Campaigns, with the addition of Viewable impressions bidding, which I don’t recommend.

The same rules apply:

  • if you have a lot of conversions, try automated strategies.
  • if you don’t, use manual CPC bidding until you do.

Video Campaigns

Video ads can be huge. Yes, like the Display campaign, it’s hard to make them convert. But if you nail the video, this can be a game changer. Video ads are not just about showing off a product; they are about telling a story that resonates.

And this is the biggest challenge with video campaigns: creating videos is hard. I can sit here and tell you how big brands are making those viral clips or how this soap brand is making millions with this ad. It’s easier said than done.

You have to consider targeting and the video. If either doesn’t work, you will waste a lot of money.

Like Display campaigns, video campaigns are not recommended for beginners or small businesses. Running effective Video campaigns requires large budgets.

However, they help you with brand awareness and reaching new audiences, both of which are expensive.

Minimum budget

From $10000 per month. In larger markets, this can go up to $ 50,000 per month.

The results can be reached with a smaller budget, but it’s mostly due to a product, market, and conversion type and is more of an exception than a rule.



Bidding strategy

Use maximum CPV (cost per view) if you don’t have conversions in the account or if there is a low number of them.

Otherwise, you can start with a target CPA. When creating a Video ad, choose “Drive conversions.”




App Campaigns

Do you have an app? If not, then this part is not relevant to you.

App campaigns can be a great additional source of new traffic. Since both Google and Apple have their own app stores, a significant percentage of people first check the app store for an app and then do a Google search. It’s a different behavior of people who grew up using apps.

It can be your go-to campaign if your app can generate enough value (revenue) to cover the advertising costs. Otherwise, I would still recommend starting with Search Ads.

What I like about the apps is that the campaign is easy to launch. Google doesn’t allow you to select much of the settings and everything is done automatically. You do have to take care of creative assets. On the other hand, optimizing those campaigns can be a pain in the ass.


Required minimum budget

From $100 per month. If your conversion is app installs, then you can start with a small budget, as those are cheap in most countries. Of course, it depends on the app. It has to be useful. Otherwise, people won’t install it.

You can optimize towards in-app actions, which come later when you have enough volume and conversions.

You can start with a low budget, but you might be required to increase it to at least $1000 monthly. The reason is that not many people use the app after installing it, and even fewer people use it frequently. According to statistics, 25% of users use an app only once, and about 70% churn within 3 months.

If your test campaign shows a good price per install, then you can slowly increase the budget and measure what those users are doing on the app.



Bidding strategy

You don’t have many choices here. You can bid per install or in-app action, and you can switch to in-app action value.




Hotel Ads

Hotel campaigns are designed for people who own or manage hotels, and they appear on Search or Maps. Google has a specially designed hotel booking module that can show photos of the hotel, amenities, prices, and a link to book the hotel.

It’s a campaign type designed for hotels; there shouldn’t be a question of whether to try it or not.


Minimum budget

It’s a competitive niche, so expect the budget to be in the thousands. Depending on the country and your average booking room value, it might reach $5000 per month.

You could achieve results with a lower budget.



Bidding strategy

Usually, you would use enhanced CPC. If the conversion value is passed correctly, you can use the Target ROAS strategy.



Shopping Ads

Similar to hotel ads, they are designed for e-commerce stores. Again, if you have a store, you should consider this campaign type. I would probably run Search and Shopping ads at the same time. Or just Shopping ads alone.

You have your products appear in the search results along with a picture, price, and the product name.


Minimum budget

E-commerce is very competitive. Expect it to be expensive, $3000 per month and higher. You could achieve results with a lower budget. As I mentioned at the start of the post, there are many factors that might impact your spending.



Bidding strategy

Usually, you would start with manual CPC just to get your hands dirty and get the hang of Shopping campaigns. Later, you can move on to automated strategies.


Performance Max (PMax) campaigns

Many might say this is a great campaign type, and you should start with this one. Or use only PMax. Well, don’t listen. I always encourage you to try and test things, but not just blindly listen to anyone on the internet.

This is a new campaign type that is being heavily pushed by Google. I think the reason is that it’s a black box (for now). Meaning there aren’t a lot of things you can do to optimize it. Everything is controlled by Google. Google loves to control your campaigns.

This campaign uses machine learning to optimize campaigns through its network, be it Search, Display, or YouTube. You only need to provide the data. Ideally, conversions. Again, Google says at least 30 a month. I say more.

It can even replace your Shopping campaigns, but there are experts who advise you to start with Shopping campaigns and only then move to PMax. And I agree with them.

Minimum budget

You can use PMax for any type of product or service. The only thing it needs is the conversion data; the more, the better. If your CPA is low, you would probably need at least $500 a month. But it’s easy to calculate. If your CPA is $20, you would probably need $1000-$2000 per month. Multiply your CPA by 50 or 100 to be safe.


Bidding strategy

Target CPA bidding. You can later remove the CPA cap, and it will become a Maximise conversions campaign—tread carefully when removing the CPA cap, though.





Frequently Asked Questions


What are the different types of Google Ads campaigns available?

Google offers a variety of campaign types, including Search, Display, Video, App, Shopping, Smart, and other specialized campaigns like Hotel, Demand Gen, and Call campaigns.


How do I choose the right Google Ads campaign for my business?

Select a campaign type based on your marketing goals, brand strategy, and budget. Search ads are ideal for immediate conversions. For brand awareness, consider Display or Video Ads. Shopping Ads are great for e-commerce sales, while App campaigns can boost app downloads.


What are Google Banner Ads, and when should I use them?

Banner Ads are visually engaging ads used in Display campaigns. They are effective for achieving high volumes of impressions and are particularly useful for brand awareness and remarketing, especially in niche markets.


Can I create a Google Ads campaign without a specific goal?

Yes, you can create a Google Ads campaign without a goal’s guidance, which allows for more flexibility and customization based on your advertising needs.


What are the benefits of using Search Ads in Google Ads?

Search Ads target customers who are actively searching for products or services similar to yours, making them highly effective for driving immediate conversions and sales.


How can I measure the success of my Google Ads campaigns?

Measure the success of your campaigns by implementing conversion tracking tools, analyzing performance metrics, and conducting A/B testing to optimize for higher conversion rates and ROI. Always focus on the outcomes (leads, sales, revenue) and never on clicks, CTR, reach.


What is the role of machine learning in optimizing Google Display campaigns?

Machine learning in Display campaigns helps with optimized targeting, smart bidding, and ad format selection to reach the right audience and achieve campaign goals more effectively.