AdWords isn’t where it used to be in terms of cheap CPC. Sure, there are a lot of good reasons to use it still, but there are also a lot of reasons to use it with caution. It’s a system designed to make money for Google, not necessarily for you. In fact, because it is a bidding service, everyone with a higher price point in your market is going to have you beat… so raise your price point, if you can.
$1000 budget was what Ty Evans recommended during his interview. I think that’s a bit steep, though I think that includes Facebook Ads as well, if that helps any.
$300 budget was what Kalen Smith recommended during his interview. I believe this was as a monthly budget, as to not overspend. This forces you to be frugal.
$50 per day was another recommendation, though I wonder if it is arbitrary:
Split testing keywords, banners, colors, pictures, facial expressions, and ad copy is so important… As is testing user metrics like country, affinity groups, gender, etc. Anything that ultimately narrows down your audience is going to help CTR and conversions. This is what I’m learning as I get more into advertising… this is how it’s done!
I’m not so convinced on the test budget… so, my audience, tell me…
How much money do you spend before you give up and move on?