HomeInternet Advertising

How to calculate the right ppc advertising budget

How to calculate the right ppc advertising budget
Like Tweet Pin it Share Share Email

There’s no uncertainty that when pay per click ads used in the right way, can be very successful. Yet it can be a minefield for a starter who has no clear understanding of how the business operates.

The idea that you only shell out some cash if anyone visits your site by clicking on your ad sounds appealing on the face of it. And it is true. But this does lead some people to dive into this area without first looking carefully into it.

Maybe the most important thing you need to initially worry about is tips to calculate the right PPC advertising budget. All businesses have some kind of advertisement budget, so if you don’t have that planned yet, then now is the time to hammer it out. In fact, you have more control over pay per click advertising than you do over a lot of other promo types that you can go for online.

Any ppc promotional budget needs to be a two-way union. First you have to weigh how much money you can afford to allocate to this reason. And second, you have to think about how far your intended budget is going to go. The term ‘cost per click’ refers to the fact that you must pay a given amount for the lead each time someone clicks on your ad.

But at any given time there is no fixed sum for any single lead. This is the constantly fluid part of pay per click advertising and it really relies on supply and demand. The more famous the word or expression, the more costly each click would be for you to bid on.

And you can see that if you bid on a keyword which has an average cost of $15.50 per click you won’t get far with a budget of $20 a week. But if you focus on planning the PPC advertising budget you better results anyway, your budget will stretch a lot further.

Understanding when the best time to bid is key to campaign performance, and how much to bid. There are sites which offer an analysis of keywords. They also give advice about how to apply for offers. General words would cost more. Also they may not necessarily yield the best conversion results. Such phrases draw a lot of clicks from semi-interested people and can eat the budget only.

Keyword selection is just as critical as the budget. The best to use are specific keywords which are relevant to the topic. Keyword analysis should be conducted consistently and the time spent researching keywords should not be restricted.

But think carefully before making the budget work out. A touch of forward thinking at this early stage will later reap the rewards.