One of the best parts about pay per click advertising (PPC) is that you can closely control how much money you spend on it. PPC is a great advertising strategy for companies that want tight rights on their ad spend because you only pay when someone clicks on the ad and you can set a limit for how much you want to spend on it.
So, PPC is a budget-friendly advertising choice, but how do you just how much you should allocate for it? Here are some helpful tips for setting your PPC budget to make sure you’re spending enough to get your business seen but not wasting precious marketing dollars that could be used elsewhere.
Determine How Much You’ll Be Paying Per Click
You pay each time someone clicks on an ad with PPC advertising, so you want to make sure you know how much you can expect to pay per click. While it’s impossible to tell before you roll out your ad, there are some pretty helpful tools that can give you a good idea of what you can expect to spend. For example, Google AdWords has a keyword planner and traffic estimator, which gives you an estimated cost for each click.
Set Goals for Your PPC Ads
Every company has a different reason for using PPC ads. Do you want to acquire new customers (generate leads and convert them), or do you want to build brand awareness? Determining whether your ads are intended to bring in more revenue or to simply help build your company, in the long run, can help you decide how much money you can actually allocate to the campaign. Frequently, it makes sense to set a bigger budget for a campaign that you know is going to bring your company more money.
Look at Your Conversion Rate
Take a look at your website analytics and determine how many site visitors actually convert to paying customers. This will give you an idea of how many people who click your ad will actually spend money. By doing some simple arithmetic, you can figure out what income your ad campaign will bring in and then figure out how much is worth investing.