![]() This reduces conversion rates and begins to reduce your profitability. As you look to expand your spend, you will gradually target less relevant, or less commercial search terms, and expand into broader audiences. This is because you will likely have started out with the most promising keywords. Your campaigns will likely become less profitable after a certain point. PPC is subject to the law of diminishing returns. Take a look at how to calculate a PPC budget for a specific target goal to learn how to do this.įrom this minimum, you can look to expand out based on profitability (and we do recommend that you bid to profit) But, I’d recommend as a rough rule of thumb that you want to provide enough budget for at least 15 conversions per month. Your minimum really depends on your business and so many other factors. If you only get two clicks per day, this is not enough for Google to learn from. Invest enough to give Google’s bidding algorithms a chance to work.Make sure that you invest enough time or enough money to get help with PPC. Good execution is a major factor in PPC, as with many things, poorly-built campaigns will probably not do well. Invest enough to set up your PPC properly.You can start with as small a daily spend as you want: There is no minimum budget.īut, you should also try to invest enough into the channel to get an accurate assessment of performance. The answer, in this case, is that you could look to start your PPC budget small to test and expand out from there.īy getting a read on demand and performance, you can begin to test the opportunity and whether you can expand. This question is typically asked by small businesses getting started on PPC. The second factor is worth expanding upon, as it is often the crucial one. The first factor will start to really impact you if you are looking to target a hyper-niche area that very few people are searching for. Returns - Investment in PPC is very scalable, but it is also subject to the law of diminishing returns.Search demand - Your spend will depend on the amount of searches your target search terms (keywords) generate.There are two key factors for how much you should spend on PPC campaigns: The short answer is therefore that you should spend as much on PPC as you can whilst remaining profitable. ![]() PPC is, like all marketing, an investment. We make templates like this, and much more, free within Ayima Insights Club. If PPC is just one part of your wider plans, this should be another great resource for you. If you want to start more from a wider marketing perspective, we’ve also built a digital marketing strategy template. We recommend working through this template as you read this piece. This makes the process easy, and also provides a number of handy visualizations, like the one below. We’ve also made a PPC budget calculator tool and template for you. But, having a specific target goal requires you to approach budgeting a little differently. You will just get your data from different sources. The first two broadly follow a similar process. if you have a set number of leads per month) How to calculate a PPC budget for a specific target goal (e.g.Based on historical data - If you already have your accounts live, forecasting PPC spends based on historical data.Starting from scratch- How to calculate a PPC budget with little to no historical PPC data.We’ve produced a guide to each of these scenarios for you. There are a few different scenarios in which you might have to calculate PPC budgets. We’ll show you exactly how to plan what to spend on PPC each month in six simple steps. To determine how much to budget for PPC, you therefore also need to determine both the demand and the natural seasonality. This is because PPC budgets rely upon demand: Spend depends on searches. Calculating a budget for Pay Per Click (PPC) is a slightly different task from budgeting for other paid media channels.
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