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How to Budget for PPC Advertising as a Small Business
Pay-Per-Click (PPC) advertising has become an important part of any digital marketing strategy. The effectiveness of your campaign is determined on your strategy and planning. PPC advertising has proven beneficial for businesses of all sizes, across all sectors. This marketing strategy can be used to display products through the Google Shopping feed to display ads on websites related to your business.
It is essential to understand that the bidding strategy you use can impact your budget.
In order to determine your PPC advertising budget, it is recommended to multiply your estimated impression by the monthly search volumes of your selected keywords. This should be between 50% and 70%.
Chances are you are curious about click potential. Once you know how many clicks to expect, you can multiply it by the average cost per click for your chosen keywords. By determining a budget, you can identify whether it is financially viable for your small business, based on the number of leads you can expect.
Your budget should be equal to the ration of customers and the close rate of leads, you then divide that by the conversion rate and multiply it by the cost per click (CPC). You can calculate the number of customers by dividing the revenue by sales period, dividing the result by the average conversion amount.
In order to achieve success, your lifetime value should exceed three times the acquisition cost. PPC budgeting should be adaptable. You can use Google AdWords and Keyword Planner to get estimates, though these are rough estimates.
PPC can be time consuming, complex, and requires ongoing monitoring and adjusting. As a small business owner, chances are you don't have the time in your busy day to focus on your digital advertising. Professional agencies can provide you with an effective PPC strategy that drives results, while reducing your cost per click and increasing your return on investment.
Genie Crawl can provide you with a customised PPC strategy, along with ongoing management. We are a small and talented team and are the Number One rated Google Ads marketing agency. Get in touch with our team today to discuss your PPC advertising needs in more detail.
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