Pay Per Click (PPC) Budget - "How Much Should I Spend?" Part 2

Pay Per Click (PPC) Budget - "How Much Should I Spend

?" Part 2

This post is part two of: Pay Per Click - (PPC) Budget - "How Much Should I spend"

Once you have done thorough key word research and developed a good overview of the key words for the PPC campaign. It is at this point that you obtain your "average cost per click". A figure that allows you to grasp the cost and expense to your business per month. This 3 step process is covered in Pay Per Click - "How Much Should I spend" .

Before setting your campaign live you should double check your key words. Ad spend can be wasted in two main areas, the first being key words that are too general. These are keywords that are usually one word without a defining tail. For example if I were a shoe company running a campaign with the keyword "shoe" I would in most cases experience budget seepage. Money would be wasted on people searching for information on shoes but may not necessarily actually wanting to buy. This is fine if I'm running a campaign with a large budget and wish to saturate the market with a branded PPC campaign, but this is not a priority for most small to medium businesses. The second main area to look out for before setting a campaign live is key words that are phrase or broad matched that will attract customers you do not want or simply cannot accommodate. For example if one of your phrased key words is "Cheap Shoes" and a potential customer searches "Sport Shoes Cheap" then your add will appear and may be clicked on. You may sell shoes, but you may not necessarily sell sports shoes. This is where negative key words come into play within a pay per click campaign. I will do a post on this at a later date.

Once you are happy with your key words and have completed your campaign set up, it is at this point that you can start factoring in ROI (Return on Investment). Please note, that you should give a campaign at least 3 months before you start making decisions based on ROI. As the first 3 months is generally viewed as data collection and a expectation of high ROI within these first months is not recommended.

Once the campaign has been running for a minimum of 3 months your real time average cost per click is obtained, you can work out how many clicks it takes you to get a sale on average and use this figure to assist with structuring your budget. It is important to constantly monitor your bids and cost per click so that you are getting the most out of your allocated budget.

This was written by Focus Search, based in Melbourne Australia.

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