How to calculate a Google Ads budget increase?

Imagine that you have been running ad campaigns for a client for a year, and it’s been going well. However, the Google Ads dashboard is still saying that search impression share is being lost due to budget. Now what?

As an Account Manager or PPC specialist, you can and should suggest increasing the ad budget to your client, but you must make sure that the client will get benefit from the budget increase.

So, what should be your suggested Search budget for the campaign to perform at its best?

  1. Look at the client budget spent over 30-60-90 days (its up to you to choose the time frame). We’ll label this variable “BS”
  2. Look at the search impression share lost to budget column (reported as a % in the column), we’ll label this variable “SILB”
  3. Then use this calculation: BS / (1-SILB) = Budget needed to fulfill 100% search impression share from that time period
  4. From there I usually just round a little bit up or down depending on what I’ve noticed from spend patterns

For Example

  1. If over 30 days a client spent $1400 in Google search ads
  2. They have lost 23% of available search impression share because of budget
  3. Run the #’s: 1400/(1-0.23) = 1818.18
  4. I would then call it as being a $1750-2000 needed budget to have ads at their current spend and avg CPC levels show for 100% of their available search impression share for the next 30 days

Hopefully this helps! Comment here if you have any questions.