Are you looking to improve your PPC campaign management?
Sure, we’ve all heard Google’s claim. Every dollar you spend on Google AdWords earns you $2 in revenue. Unfortunately, if you’ve already set up a PPC campaign, you learned firsthand that those numbers don’t apply to you. They’re a statistic derived from a large sample of expert advertisers with big budgets.
Does that mean that PPC doesn’t work? No, quite the opposite. PPC can have huge rewards if know where to funnel your money.
If you don’t know, don’t worry. We’ve got you covered. That’s what this entire article is about, so grab your PPC budget and take a seat. When you’re ready to build a lucrative ad campaign and forever change your business, read on.
PPC Campaign Management
You’ve got to spend money to make money. You may have heard this motto before, but with pay-per-click advertising, it’s true. It’s the way the system was designed.
The problem for most of us is deciding how much we should spend. Too much and you may be blowing your budget. Too little and you might not reach enough people to make it worthwhile.
Your annual budget is an enormous part of your PPC strategy. So, whether you’re a novice or you’ve been building PPC campaigns for years, let’s take a step back. We’ll figure out how to make the most from the money you want to spend.
Your leads are the most important consideration when building your budget. Take a seat and figure out the characteristics of your leads:
- Lead quality
- Buying cycle
- Geographic location
- Visitor frequency
If you’re unsure what your target lead should look like, begin instead with the following questions:
- How many leads do I need to hit my goal?
- What’s my current conversion rate?
- What can I afford to spend?
In the next section, we’ll take a closer look at the exact numbers you need to get started with your PPC.
Your Starting PPC Budget
Now it’s time to do some basic calculations, so grab the list you made in the sections above and your nearest calculator app. The formula will look like this:
cost-per-lead x (number of new leads per month / conversion rate) = total budget
Now let’s assume the following:
- Cost-per-lead = $0.10
- Number of new leads per month = 1000
- Conversion rate = 2%
When we plug those numbers into the formula, it looks like this:
$0.10 x (1000 / .02) = $5000
That means you’d need a budget of $5000 each month to reach your goal of 1000 new leads. These numbers will change according to your goals. So, what about you, what is your budget?
Play with this formula a little to get a better grasp of the elements. It’ll make the rest of the process easier. Also, recognize that free cost per click calculators are available from many popular online sites.