Mar 18 2008
Guide to Pay Per Click Mastery: Creating a PPC Budget
When starting a new pay per click campaign, one of the most important decisions you will have to make is how much money you are willing to spend. This should be broken down into how much you are willing to spend per day, per month, and per year. This decision needs to be based off of a few main criteria. Ask yourself these questions when trying to figure out what budget makes sense for your site…
1)How many visitors per day are you hoping to drive to your site?
2)How many visitors does it take to start to see conversions take place?
3)How much money spent is too much to turn a positive ROI?
4)Is there a cap amount where anything over is not productive to your site?
5)How competitive is my market for the main keywords?
6)How much time/energy am I willing to spend setting up and editing these campaigns?
The answer to these questions will be different for every site. When we ask some of our clients these questions, we sometimes get blank stares in return. That is why it may make sense to start with a small budget and work your way to a larger budget, when you see great leads coming in. Some sites can see success with just about $20 dollars a day, while others need at least $500 a day to get a single conversion. Depending on how much money a single conversion earns you, this will help you decide if your advertising budget makes sense. There is a sweet spot for every advertiser that you need to find. This sweet spot is the range where your advertising budget turns a positive ROI. To find that sweet spot, don’t be scared to ask ppc professionals for help.
In contrast, some people advertise their site online hoping to raise awareness of their topic, but not looking to make money from conversions or sales. If you are not making “sales”, you need to ask yourself how much money per day you are willing to spend to generate awareness for your site. Generally these types of sites have smaller budgets, but are also paying less per click.
When trying to create a pay per click budget you need to understand that while the costs seems high, it is usually right on line with any sort of newspaper,radio, magazine ad you might place (per year). The great thing about spending on the Internet, over those types of print and audio ads, is that you know people are landing on your site. That is why ad agencies are placing more of their clients money into online advertising, than print/radio ads. If you are looking to generate sales, please do not be scared to place most of your overall advertising budget into a paid ad campaign. This is a new way of thinking that is scary to some site owners, but this is the way advertising is heading.
Related Posts:



















