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PPC Budgeting Tips: How Much Should You Really Spend on Ads?
Creating an effective Pay-Per-Click (PPC) budget is important to maximise your advertising efforts, ensuring you reach your target audience effectively. In order to set your PPC budget, you need to take certain factors into consideration, including the performance of past campaigns, marketing goals, and expected customer acquisition costs.
Your PPC budget is how much money you commit to in order to acquire online traffic through advertising. When you determine your budget, you significantly impact your return on investment.
PPC spending is how much your business allocates to advertising. This can be on Google Ads, Facebook Ads, Bing Ads, or LinkedIn Ads. Your budget will cover key areas including:
PPC Pricing Models
There are three PPC pricing models you need to know:
It is essential that you monitor these metrics closely in order to optimise your PPC spending.
Creating a PPC budget means aligning your budget with your goals and industry understanding. It requires a structured approach that can improve your ad spending, while helping you achieve a desired outcome. At Genie Crawl, we recommend the following:
Your PPC budget should align with your business goals. This can be to generate leads, improve brand awareness, or increase revenue. By setting clear goals, you can decide how much to spend on advertising.
When you know your industry benchmarks you can make informed PPC budgeting decisions. Costs can vary from one industry to the next. This helps you set realistic expectations on how your PPC budget will perform.
The good news is there is a simple PPC budget formula you can use:
Budget = (Target monthly revenue or expected return on ad spend)
Therefore, if you are a local business wanting to achieve £30,000 per month in revenue with a 3:1 return on ad spend, your budget allocation would be:
Budget = (£30,000 / 3) = £10,000
In order to achieve the best return on investment (ROI) on your PPC campaigns, you want to refine your approach to landing page performance and keyword targeting, to name a few, to achieve better end results.
In order to reduce wasted ad spending, we recommend you reduce bids during low converting times and increase them during high converting times to attract high intent users.
We also recommend consistently monitoring your advert performance to identify any keywords that are under performing, pausing these campaigns to reduce wasting your budget on ads that are less likely to convert.
In order to ensure your PPC budget is effective, we recommend relying on real time insights. When you analyse your PPC data before boosting your ad spending, you invest in campaigns that drive conversions. Genie Crawl is rated the Number 1 SEO and Google Ads marketing agency with an expert team of professionals who know how to maximise your PPC budget and reduce wasted ad spending. Turn more leads into customers by contacting Genie Crawl today.
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