When I’m starting out with a new search arbitrage campaign, the first question I always ask is: How much should I spend to test this properly? Getting this right is important. I’m not trying to make a profit during the test phase.
My only goal is to collect enough data to understand what works and what doesn’t.
Here is a short video which can help you understand better,
Why Testing Needs Budget
The whole point of testing is to gather reliable data. That means I need enough clicks and impressions to reach a conclusion I can trust. If I spend too little, the results will be misleading. If I spend too much, I risk burning cash on ideas that might not work. I always aim for a balance.
If I’m Targeting the US
When I run testing campaigns in the US, I plan for higher costs. The US market is very competitive. Lots of advertisers bid on the same keywords, which increases the average cost per click.
For this reason, I usually set a daily testing budget of $10 to $15. This gives me a steady stream of traffic and lets me see early trends without committing too much upfront. Anything less and the data comes in too slowly to be useful.
If I’m Targeting Other Countries
Outside the US, costs are generally lower. Less competition means cheaper clicks. That gives me more room to test without overspending.
In these regions, I often start with $5 to $10 per day. This is usually enough to see patterns and judge whether a campaign has potential.
What I Consider Before Setting a Budget
Here’s how I think about budget decisions during testing:
- My Risk Limit: I only invest what I’m okay with losing. Testing is part of the game, and not all tests succeed.
- Search Volume: For low-volume keywords, I can spend less per day but need more time. For high-volume keywords, I may need to raise the budget to keep up.
- Conversion Data: I need some conversions during the test. That means I can’t test properly with just a few clicks. A slightly higher budget helps me see real results faster.
- Ad Platform Differences: Costs vary depending on whether I’m using Google Ads, Microsoft Ads, or another platform. I adjust my budget accordingly.
- Landing Page Quality: A weak landing page wastes money. Before I increase my spend, I make sure the landing page is well-optimized and can actually convert.
My goal with testing is simple: gather enough data to know what to do next. I start small, watch carefully, and adjust when needed. In competitive markets like the US, I budget higher from the start. In cheaper markets, I test more gently.
No matter what, I treat every test as a learning investment. Once I find what works, I scale the winners—and drop the rest.
