Merely conducting an advertising campaign is not enough for businesses, as planning is a massive determinant for your success. Effectively creating a budgeting procedure is an effective way to determine how successful your business’ digital efforts will be. If you have a website, you will most likely be aware that pay per click marketing is vital to bring in more leads and rank higher on search engines. However, many companies tend to overspend when it comes to PPC marketing.
Let us look at the best way to determine the ideal budget for your PPC marketing along with some valuable tips.
What is the Ideal PPC Budget
Having a forecasted or predefined PPC budget can be massively helpful to ensure your strategy remains on track. It can also help you set goals, plan for the long term, and set benchmarks effectively. However, there is no pre determined amount that one should spend for paid advertising. This is because budgets, spending habits and goals vary according to every business.
Generally, however, considering certain components could help you decide your ideal budget. These components are: industry keywords, website conversion rate and your customer’s average lifetime value.
The Four Best Ways to Determine you PPC Marketing Budget
The last thing any business owner would want to do is go in blind and spend their entire budget on just one thing. Mentioned below, are some tried and tested tips to help you determine how much you should spend for PPC marketing.
Identify Keywords for Your Company’s Marketing Goals
Before determining a suitable budget, particularly for search campaigns, it would be best to identify the keywords people are using to search your service or product. While ecommerce stores and similar businesses may not face many issues doing this, it could be a problem for business sells a niche product or service.
In cases like these, it is best to determine how effective your marketing budget would be. This is where you must focus on search terms and keywords that show high purchase intent. These terms have excellent click through and conversion rates.
Utilize Google’s Keyword Planner Report
This tool by Google is ideal for helping businesses refining their budget and audience. It provides numerous options, allowing users to search cost and click performance forecasts, keywords, trends and search volume related data.
Every option in this tool offers users a report or list, which they can filter to find particular data like ad impression share, average monthly searches and much more. Alternatively, there are tools like Semrush or Ahrefs that can help people consider their PPC and SEO related needs. These tools also provide users with detailed filters, accurate insights and keyword data. All of this comes in quite handy when determining a PPC marketing campaign’s budget.
Remember, no matter which software you utilize, the numbers are never set in stone. Instead, they are merely an estimate that can help you determine the best and worst case scenarios.
Do the Calculations
Whether you hire a PPC agency London or any other PPC expert, they will utilize a sequence formula for determining your PPC marketing budget. If you are planning to do it yourself, it would be best to begin by taking the average keyword searches and multiply it with a targeted search impression. Doing so will give you the probable amount of impressions the ads on your site could get for each keyword.
After sorting out the impression volume, your next step must be to establish how many clicks you could potentially get. You can do this by multiplying impressions with an expected click through rate.
Get an Estimate or Your Profits
Using ROAS (return on ad spend) to determine the performance of digital advertising is a common tactic used by thousands of marketers. Determining target return on ad spend is not as complicated as it initially seems. The ROAS is essentially the ratio you get by dividing the amount you spent on a campaign by the total revenue.
It is worth keeping in mind that ROAS generally considers a customer’s initial purchase, which is where things could get a little tricky. This is where getting help from a PPC expert could prove to be a wise choice.
When following the steps discussed in this piece, make sure that you pull important data for supporting your decisions. Also, you must steer clear from unpleasant scenarios by having realistic expectations for your objectives and their outcomes. Sure, there might be a few obstacles here and there, but if you follow the steps mentioned in this piece, getting a rough estimate for your PPC marketing budget would become relatively easy.