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The Best Budgets for Pay Per Click PPC

Setting a budget for your PPC campaign will be one of the biggest determining factors in the campaign’s success; after all, the last thing you want to do is spend far more money than you need to on each ad, as this will leave you with very little profit to show for your efforts, but if you spend too little on each ad, this could put you in a position where you gain nothing from the ad campaign at all! As you conduct research in an effort to understand the best budgets for PPC, you will come across a lot of specific advice intended for a general audience, but the first thing you need to realize about PPC budgets is that you will need to determine what the right budget is for you!

The first factor you will need to look at, in order to determine what the right budget is for you, is how much money you typically make off of each click on your ad. If you are converting twenty percent of your clicks, but the product you are selling only nets you a £6 profit, you will only be breaking even if you pay £2 per click. On the other hand, if you only convert about five percent of your clicks, but the product you are selling nets you a £50 profit, you could spend £2 per click and still make a tidy profit. Understand what your conversion rate and your profit-per-click are, and use this information to help you set your budget.

Furthermore, you are likely to gather advice that tells you that once you have determined a PPC bid that brings a profit your way, you will be ready to inundate the Internet with your ad. Realize, however, that there is a limit to how many orders you can fulfill in a month, or how much of a product you have in stock, or – if you provide a service – how much time you have to provide this service, which means that you will put yourself in poor shape if your monthly PPC budget is too large! After you have determined your conversion rate and your PPC bid, figure out how many sales you feel comfortable handling in a month – and limit your PPC budget accordingly.

While plenty of people will try to offer you concrete advice on what “the right PPC budget” is, realize that in the end, “the right PPC budget” is whatever you determine to be the right PPC budget for you!

Author Farhad Kamali

I am Farhad Kamali web designer, online marketer and SEO guy, I love what I do on daily basis, so if you would like to find out more you are most welcome.

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