Are you planning to run a PPC ad campaign for your business? Before you get into it, it is important to know whether it will be profitable for your business or not. Having enough budget is one thing but your profit margin depends on numerous factors. So, considering everything together is important.   

If your PPC budget is low, you will not be able to reach good volumes that are required to say the campaign is profitable. After spending much you will realize you are not getting enough searches a day as compared to the budget spent and that you are required to concentrate on other channels that can bring in you enough sales.  

So, to simplify things for you here we are with a blog that will help you understand how much you should spend on pay-per-click. We have formulated a set of tips that will help you know what you need to run a profitable campaign.  

Rules for setting your PPC Ad Budget

Rules for setting your PPC Ad Budget

  • Select the Keywords for your Ad 

What are the possible terms that a potential customer may use when looking for your product or service on the online platform? The answer can be simple and straightforward if you are selling only a few services or you have an eCommerce store. Now things can get a bit complicated if your product or service is niche-specific.  

You need to come up with a set of keywords before you plan your PPC budget that showcases your intent to purchase. You should not come up with just words that depict your product or service, rather it should have an immediate intent to purchase. Come up with a list of keywords with high-intent keywords on top followed by low-intent keywords. A good PPC campaign management services provider will have the knack of coming up with such a list with ease.  

  • Run a Keyword Planner Report

One of the best ways to know your audience and budget is by leveraging powerful tools like Google’s Keyword Planner. Such a tool will let you look for new keywords, get a forecast on click and cost performance, and combine keyword lists. It also lets you know the search volume data and trends which have been explained in detail below. Now each option will provide you with a report or list that can be filtered based on different aspects like ad impression share, average monthly searches, as well as suggested bids based on CPC for the same keywords with the same setting you have selected, and other advertisers are paying for.  

For SEO and PPC requirements, any marketer will also use tools like SEMRush and Ahrefs. Their keyword tools will provide you with detailed filters, insights, and accurate keyword data. When checking them for the PPC budget, just understand that these numbers are just estimates.  

  • Research Trends in Search Volume

The search volume of a keyword means the number of times people have searched for a word at a given time to find your product. The number of times your ad will be visible over the search engine depends on its search volume. If your selected word has a very low search volume, then your ad will not be shown by Google.  

Now for small businesses, this can prove to be beneficial as smaller search volume means low competition and lower costs. This means it will become possible to show your business for your search terms when running a campaign. Now in case the search volume is high, then you can expect high competition and higher costs in your niche, and you will be required to make a huge initial investment to get into the space. 

  • Research CPC Estimates 

Along with your research on keyword search volumes, you will also have to go through CPC estimates. It is equally important as knowing your PPC budget. This shows the amount you need to pay when someone clicks on your ad. You will have a high cost-per-click for high-search volume keywords. By conducting proper research and collecting enough data you will be able to understand whether winning such clicks is worth the investment for your business or not.  

  • Target Geography Areas that Matter 

Now this can differ from business to business. If yours is a local business, then you should start by selecting your surrounding area at the beginning. Chances are there that there is some area matching the demographics where your products will serve well. Now if you are planning to run a nationwide campaign then you can focus on a small area for geographic targeting and expand your campaign later as your business makes profits.  

  • Try Running Ads at Specific Times 

Once your ad campaigns have proved to be running profitable and you are able to get the expected ROI then it is time to start limiting the timeframe of the ad to boost its revenue just by showcasing them during the profitable hours of the day. For example, you can run the campaigns to drive calls only during the hours when your representatives will be available for a call. Understanding such factors can help you boost your business online with the right ad campaigns.  

  • Target Customer-Specific Devices 

Try to understand the devices your customers will be using when researching products or services and making purchases. Many a time, it has been seen that customers research and purchase lower-ticket items on mobile phones while using desktops to research and purchase higher-ticket items. So, by understanding where they are in the sales funnel you can plan less aggressive or more aggressive steps. 

  • Understand the Metrics 

Once you have your campaign running then it is time to know your metrics to understand whether your campaign is performing or not. If not, you will need to find ways to figure out things. You can know whether your expensive keywords are performing or not, or even which of your keywords are doing well over SERPs. It is advisable that you go for a reliable PPC service provider as there are benefits of hiring managed PPC ad campaign services.  

Tips for PPC Budgeting

Tips for PPC Budgeting

 

Once you know about the PPC budget, preparing one is the next step, and for many, it can be overwhelming. To help you out here we have come up with a few things that you can keep in your mind when working on the budgeting part. 

  • Choose the Right Type of Budget 

Companies generally have different options when setting budgets for paid searches. Some of them are: 

  1. Percentage of the budget – Understand the industry benchmarks to set the ad budget.
  2. Last year-based budget – Consider the total sales of the previous year and get an average of the sales over the last few years to set the budget by considering a percentage of it.
  3. Task-based budget – By considering the planned advertising activities, the PPC budget is set.  

Marketers consider all possible approaches before deciding on the final budget. This generally helps in coming up with the best estimate that will help in meeting the PPC goals.  

Selecting the right advertising platform is the next important thing. This is important as what works for one company may not work for another one. Finding the right will help you reach your audience easily.  

  • Consider Forecasting 

The way data is used to make predictions is what forecasting means in PPC. Such forecasting helps in collecting quality data that can help in making informed predictions.  

  • Keep Flexibility

When planning your PPC budget, you need to remain as flexible as possible as it will help you respond quickly to rising issues, any changes on the platform, or in identifying new opportunities. For example, if you find a particular channel in your favor then you can quickly move your efforts in that direction and make the most out of it.  

Building an efficient and effective PPC Campaign

Always remember to collect enough quality data to build your PPC campaign and ensure you have realistic limits set for your goals and the ad outcome. In any case, for the success of such a campaign it is advisable to reach out to a good digital marketing company in the USA like Digital Brains Tech for the best outcome.