Skip to main content

How budget suggestions are calculated

When you reach the budget step in the campaign wizard, Hero Marketer shows a suggested monthly amount. The suggestion is meant as a sensible default, not a recommendation tailored to your goals.

What the math is​

Roughly:

  1. Take the average CPC of the keywords in your cluster (using Google's reported CPC range, weighted toward the high end to be conservative).
  2. Estimate weekly click volume at a budget Hero Marketer thinks is reasonable for B2B SaaS test campaigns.
  3. Multiply to get an expected monthly spend at that click volume.
  4. Round to a round number that's easy to read.

The output is a budget that should produce enough clicks per week for Google's algorithm to start learning. Typically 50 to 200 clicks weekly, depending on cluster competitiveness.

What it's optimizing for​

The suggestion targets:

  • Enough volume to learn. Google's auction needs a minimum click count per week to optimize. Below that, performance is essentially random.
  • Not so much that you blow through budget on a test. A test campaign should produce data, not bankrupt you.
  • Reasonable for B2B SaaS. The defaults assume B2B SaaS click costs (typically $3 to $20 per click) and conversion rates (typically 1 to 5 percent).

What it's not optimizing for​

The suggestion doesn't know:

  • Your CPA target. If you have a max acceptable CPA, the suggestion isn't sized to hit it.
  • Your runway. If you have $500/month for paid search total, the suggestion may exceed your real budget.
  • Whether this is a test or a scale campaign. Test budgets and scale budgets are different. The suggestion sits closer to test.
  • Conversion value. A campaign for a $50/year product needs different budget logic than one for a $50,000/year product.

When to take it​

Take the suggestion if:

  • This is your first campaign in a cluster.
  • You want to see what the cluster can produce before committing real money.
  • You have no specific CPA or volume target yet.

Most first campaigns are well served by the suggestion.

When to override​

Override when you have a specific target the suggestion doesn't reflect:

Target CPA​

If your max acceptable CPA is $X and the cluster's average CPC is $Y, you need at least X/Y clicks to expect one conversion (assuming roughly 1 percent conversion rate; sharper if you have actual conversion data). Set budget to whatever produces enough clicks per month to deliver the conversion volume you need.

Capacity constraints​

If sales can only handle 10 new leads a week, a budget likely to produce 30 isn't useful. Right size to your downstream capacity.

Learning phase budget​

For a brand new cluster, run a small budget for two weeks (maybe half the suggestion), see what's converting, then scale based on real data.

Scale phase budget​

For a proven cluster, scale gradually. Don't jump from $500/month to $5,000/month in one move. Google's algorithm needs days to recalibrate; sudden large changes reset learning.

When the suggestion is wrong​

A few cases where the default is materially off:

  • Very competitive clusters. A cluster like "CRM" has CPC well above the typical SaaS range. The suggestion may be too low to compete.
  • Very low volume clusters. A cluster with 100 monthly searches across all keywords won't deliver Google's minimum click volume regardless of budget. The suggestion will look reasonable but the campaign won't get traction.
  • High value, low volume products. A product with $100,000 deals can afford much higher CPCs than a $10,000/year product. The suggestion treats them the same.

In each case, override.

What the budget actually controls​

The number you set is the monthly cap. Google enforces it as a daily cap (monthly divided by average days), with some flex day to day. Google may spend up to twice the daily cap on a high opportunity day but won't exceed the monthly figure.

Spend is for clicks only. Impressions don't cost. You're charged on click.

For more on what to do with budget after launch, see Set your budget.