Having a higher impression share is essential for any business looking to maximize their return on investment (ROI) from Google Ads. However, it can be difficult to know how much budget you need in order to achieve this. In this article, we’ll discuss the importance of impression share and provide a step-by-step guide on how to calculate your budget in order to achieve higher impression share.
What is Impression Share?
Impression share is the percentage of impressions that your ads receive compared with the total number of impressions that they are eligible for. It’s an important metric as it helps you understand how well your ads are performing relative to other advertisers targeting the same keywords or audiences. A higher impression share means more visibility for your ads and potentially more clicks and conversions.
Why is it Important?
Achieving a high impression share can help you reach more potential customers and increase ROI from Google Ads campaigns. It also allows you to compete more effectively against other advertisers targeting the same keywords or audiences, as well as those bidding higher than you on certain keywords or ad placements. As such, having a good understanding of how much budget you need in order to achieve a high impression share can be invaluable when planning out your campaigns.
How To Calculate Your Budget To Achieve Higher Impression Share
Step 1: Estimate Your Average Cost Per Click (CPC)
The first step is estimating what your average cost per click (CPC) will be across all of your campaigns and ad groups combined. This will give you an idea of what kind of budget you need in order to reach a certain level of impressions each month. To do this, take the total amount spent over the last 30 days divided by the total number of clicks received during that period:
Average CPC = Total Amount Spent / Total Number Of Clicks
Step 2: Estimate Your Average Position
Next, estimate what position your ads are likely going appear at based on their current performance and keyword bids compared with other advertisers targeting similar keywords or audiences:
Average Position = Current Performance + Keyword Bids Compared With Other Advertisers
Step 3: Calculate Your Estimated Impressions
Once you have estimated both your average CPC and position, use them together with historical data from previous months/years in order to calculate an estimated number of impressions for each month/year going forward:
Estimated Impressions = (Average CPC x Average Position) x Historical Data From Previous Months/Years
Step 4: Calculate Your Budget Needed To Reach Target Impressions
Finally, use these estimated impressions along with historical data from previous months/years in order calculate an estimated budget needed each month/year going forward in order reach target impressions:
Estimated Budget Needed = (Target Impressions – Estimated Impressions) x Historical Data From Previous Months/Years
Calculating budget needed for achieving higher impression shares can be complex but following these steps should help give you an idea about how much money needs allocated towards each campaign or ad group so that they can reach their desired level of visibility within search results pages and display networks across Google Ads platform. By understanding what factors influence impression shares – such as keyword bids compared with other advertisers – businesses can make better decisions when allocating budgets towards different campaigns or ad groups so that they maximize their ROI from Google Ads while still staying within their overall marketing budgets constraints.