3 Things to Consider When Setting Your PPC Advertising Budget
Customers often ask us how much Pay-Per-Click (PPC) Advertising costs. The truth is, there’s no right answer to that question. PPC costs will vary for every business and often for different campaigns within a business. What we can share with you is 3 key things you need to review to determine what YOUR PPC advertising campaign budget should be.
#1. What are the goals of your PPC Advertising campaign?
Think about why you want to run a campaign in the first place. Are you selling a product, getting webinar registrations or driving traffic to your website? Understanding what you want them to do and then following their path to becoming a long-term customer for you is crucial. Think about how many customers or leads you need in order to deem the campaign a success.
By the way – don’t be in such a hurry to focus on a PPC campaign to sell directly. In fact, we rarely advise a customer to do this. It’s much better to create leads that allow you develop a relationship with them than to attempt to go for a one-time payment.
#2. What is your timeline to meet your PPC advertising goal?
If you need to generate 1,000 leads this week, you’ll need to set a much more aggressive daily budget so you can not only create more ads with great keywords along with a wider reach.
#3. What is the value of a lead who converts to a customer or client?
Getting a lead (getting someone to give you their contact information in exchange for something else like a free download, free consultation, checklist, etc.) gives you permission to continue to develop a relationship with your prospect. The more value you provide to them, the more they will trust you with the next step in the relationship – their money. You need to understand what the value of a lead turned customer is. If your lifetime value of a customer is $100,000 then paying $10,000 for them is fair. Likewise, if the lifetime value of that customer is $20, you wouldn’t want to spend that much.
Bonus Tip: If you have a low lifetime customer value then you should consider finding ways to increase the lifetime value which can be done through price increases, upsells, cross sells and more.
At the end of it all is the fact that you need to understand that a) PPC advertising is another form of marketing and b) it is an investment. You will get what you put into it. If you aren’t willing to invest more than a few pennies then you cannot expect a large return.
If you have questions about how PPC can help your marketing outcomes or what type of budget would be right for you, we invite you to schedule a complimentary PPC overview with our team today. Simply call us at 859-263-9045 to secure a time that works best for you.