In pay-per-click (PPC), as with different things in this world, you have to invest some money to get more in return. Having a budget is a great way to plan for success with your PPC advertising campaigns.
But a common question is how much money should you spend or recommend to your clients? Selecting the ideal budget for your product or service depends on different factors, and it is ideal to have an experienced company to help you with this task. In this blog, we will review the importance of creating a budget for your PPC campaign and some tips and insights to help you set up your advertising campaign budget!
Importance of Creating a Budget for PPC Advertising Campaigns
Before PPC campaigns can be relied on to produce significant results, they first need to get a specific amount of investment. It will be challenging to have enough clicks and impressions if the budget is too low for the campaign to be successful. On the other hand, a budget that is too big could lead to waste.
That’s why having a planned budget for your PPC campaign is very important since your results will depend on the allocated funds. A well-planned budget will help you determine the best way to set up and execute your campaigns for maximum efficiency and ROI.
Tips for Setting Up Your PPC Budget
Defining Campaign Objectives
Decide what your PPC campaign should accomplish. Your goals will determine how much money you allocate, whether it’s for building brand awareness, increasing website traffic, generating leads, or boosting sales.
Conducting Market Research
Conduct detailed market research to better understand your target market, competitors, and trends. Determine the level of competition for your chosen keywords by identifying relevant keywords, examining competitor techniques, and so forth. You may estimate the costs of running PPC advertisements with this research, which will also offer suggestions for budget allocation.
Estimating the Cost-Per-Click and Bids
Calculate the probable number of clicks depending on your budget and your targeted keywords’ estimated costs per click (CPC). This estimate will help you better understand how much website traffic you can generate within your financial limits. To calculate the cost of the click and set reasonable bids, consider employing keyword research tools and keeping an eye on industry benchmarks.
Determining Campaign Duration
When establishing the budget, consider your PPC campaign’s duration. Establish the campaign’s duration so that you can allocate your funding appropriately. If you have a small budget, you can conduct more intense, shorter campaigns to get the best results quickly.
Allocating Budget across Campaign Elements
Allocate the budget across the different campaign elements available. By determining how much you want to spend on a specific location, a specific keyword, and any additional features or extensions, you plan to utilize. Distribute your budget based on the elements most likely to drive results and align with your campaign objectives.
Monitoring and Adjusting the Budget
This step is crucial since it will define whether your campaign is doing well. Keep a close eye on how your PPC campaign performs, and change your budget as necessary. The click-through rate (CTR), conversion rate, cost per conversion, and return on ad spend (ROAS) are important metrics to monitor.
Consider devoting additional money to campaigns or keywords that are working well. Similarly, reallocate the budget to the campaign’s more effective elements if some components are underperforming.
Discover Our Expertise Through Our Services!
Having a budget for your PPC advertising campaigns is crucial for the best outcomes. The ideal budget prediction depends on different factors, but understanding budget creation, how to set it up and allocate it will help you maximize your ROI, and that’s when having a marketing agency as a business partner is ideal due to their variety of services.
At OH Marketing, we can help you achieve your goals by developing a strategy that fits your needs. Our full-service digital marketing agency offers various solutions for companies looking to boost their marketing efforts! Contact us today to discover more about our services and expertise!