Budgeting For PPC: A Step-By-Step Guide

In the past decade, PPC advertising has emerged as a crucial form of marketing for businesses, services, and products. As with any strategy, the effectiveness of your ad campaigns depends greatly on the quality of your planning.

PPC advertising is beneficial for both big companies such as Apple and small businesses like the local landscapers. This marketing strategy can be utilised in various ways, including showcasing products through the Google Shopping Feed or displaying eye-catching digital ad assets (such as Google Display Ads) on websites that are related to your business.

Utilising Google Adwords (PPC) is an effective method for anyone to advertise their business or brand to internet users.

However, PPC advertising comes with its own set of specific requirements and expectations. It is crucial to follow important criteria for your website in order to optimise your ad performance. The initial step to maximising your ad performance is establishing a monthly budget.

Understanding that the bidding strategy can impact your paid search budget is crucial. In this discussion, we will learn how to determine a PPC budget for a CPC (Cost Per Click) approach instead of a CPA (Cost Per Acquisition) strategy.

To start determining a PPC budget, there are a few factors that need to be taken into account:

It is a well-known fact that there are some highly competitive niches on the internet. This can be demonstrated by comparing the Financial/Loan niche to the dog accessories niche. When targeting a competitive niche, it is necessary to allocate a higher budget in order for your PPC ads to be visible on SERPs.

Frequently, when discussing the optimisation of a website, our focus is on the level of SEO optimisation. However, when it comes to optimising for PPC, there are a distinct set of standards that must be met. Nevertheless, there is no need to be alarmed.

It is not necessary to completely overhaul your website in order to accommodate your advertisements, thereby wasting the effort you have invested in optimising it for appearing in search engine result pages (SERPs). Instead, you can create separate PPC Pages that are tailored to match your ads and effectively convert visitors (whether through a contact form, sign-up, button click, or even a purchase). These pages can be set to no-index to prevent them from competing with your website’s rankings.

In order to enhance SEO, our focus will be on identifying high-performing keywords that are pertinent and have a significant search volume. The competition for these keywords is what ultimately generates traffic to your site. It is advantageous to target both informational and action-oriented keywords.

It is important to prioritise directing traffic and achieving conversions when using PPC, taking into account factors such as budget, niche, and service. In certain cases, focusing on keywords that indicate a strong intention to purchase may yield better results than targeting high-traffic generic keywords.

By focusing on a specific keyword, there will be less competition and it indicates that the searchers are well aware of what they want. This implies that if your offering meets their needs, your advertisements will have a higher success rate in converting. Examining the purpose behind the keyword can also help decrease the expense of every click from search engine results pages (SERPs).

When creating PPC campaigns, the main goal is to achieve the highest possible ROI (Return On Investment). Many people believe that investing more in Adwords will automatically lead to higher profits, but this is not always the case. It is important to learn how to optimise your account by decreasing the cost per click in order to maximise profits and build a successful PPC campaign.

To start, it is suggested to multiply the estimated search impression by the average monthly search volumes of the selected keywords, following a general rule. It is typically advised to aim for a range of 50-70%.

If you are aware of the concept, you may be curious about the potential amount of clicks you could receive (CTR – Click through rate). It is helpful to refer to industry averages for this information. Once you have an idea of the number of clicks, you can multiply it by the average cost per click based on your chosen keywords.

The appearance of the formula is as follows:

After determining your budget, you can begin considering the necessary number of leads and whether it is financially viable for you.

The budget for PPC is equal to the ratio of the number of customers and the close rate of leads divided by the website conversion rate, multiplied by the cost per click.

The number of customers can be calculated by dividing the revenue by the sales period and then dividing the result by the average conversion amount.

To achieve success, your lifetime value should exceed three times the acquisition costs. While using PPC budgeting, it is important to remain adaptable. Tools such as Google AdWords and Keyword Planner can provide estimations, but they should be taken as rough estimates. In addition to these factors, it is crucial to consider your ad copy, landing pages, and user experience.

Beach Marketing is available to provide assistance with your PPC strategy and ongoing management. Our team has a wealth of knowledge and expertise in Google Ads and other platforms, allowing us to effectively generate leads from the best channel for your target audience. Make an appointment with our friendly team by scheduling a call through our free marketing consultation service.