New Year’s is just around the corner.
Which, as you know, isn’t an overly fun or exciting process.
That can include things like:
- Employee salaries & new hires
- New product inventory
- Updating or replacing equipment & tools
- Supplier or partner costs
- Office leasing or rental costs
All of which are important.
So too is your pay-per-click (PPC) campaign budget.
You can’t just throw any leftover money at it.
And you can’t just “make it up on the fly”, either.
If you plan on implementing a pay-per-click campaign in 2017 (or if you’re looking to improve your current PPC program), setting a budget that can lead towards a profitable WEB ROI is a crucial step.
Otherwise you’ll be throwing money, clicks and time down the drain.
Not sure how to set a solid pay-per-click budget? Start with these helpful steps.
First things first: Is paid search still the right path for your business?
Some people think that pay-per-click advertising – like Yellow print ads or newspaper ads – will soon be a passing fad.
The reality is that Google and other search engines are doing more to encourage companies to invest in pay-per-click campaigns.
From dedicating more space to PPC ads to super-specific audience targeting services, pay-per-click is the benchmark for digital marketing.
And it’s only going to get better and more important for your business.
So no, pay-per-click isn’t going away.
In fact, it’s booming and used by more companies than ever.
What type of growth do you want for your company?
Have you sat down and truly thought about how much you want your business to grow in 2017?
You’re incredibly busy. So it’s okay if you haven’t.
Typically, businesses fall into one of three categories when it comes to growth:
- 1. Minimal: Businesses here are all about keeping their current customers. They don’t offer much and are content to stay where they are.
- 2. Targeted: In this category, you want to nurture new leads and retain current clients. A good plan for companies with moderate growth goals or looking to strengthen their customer base.
- 3. Maximum: You’re ambitious. You want to provide valuable resources, drive leads and conversions to your website. You think 30% annual growth is an achievable target.
Wherever your business is in its development cycle, a rock-solid PPC budget can help keep it where it is (if that’s truly your goal) or bring it to the next level.
Are your goals S.M.A.R.T.?
As mentioned in an earlier blog, you must set goals for your pay-per-click campaign.
And those goals need to be S.M.A.R.T.
S.M.A.R.T. stands for:
So let’s come up with some sample S.M.A.R.T. goals, using a home improvement contractor business as an example.
- Specific: We’d like book 60 brand new kitchen renovation projects in Milton in 2017, paying no more than $50 per customer.
- Measurable: The specific element of the goal can easily be measured in terms of customer acquisition (60), cost to get each new customer ($50 or less) and targeted location (Milton).
- Achievable: These goals can be reached by the company.
- Realistic: Saying something like “we want to put the big box store contractors” out of business isn’t realistic. Scheduling five kitchen renovations per month is.
- Time-Bound: Having a deadline helps focus your pay-per-click campaign. In this case, it’s for the entire year of 2017 (12 months).
Looking for S.M.A.R.T. goals for your business?
It’s full of great tips and easy-to-use information.
How much traffic needs to come to your site?
You have your S.M.A.R.T. goal in place.
In a perfect world, the first 60 people who visit your website would instantly book a kitchen renovation with you.
But that’s not how it works.
With pay-per-click campaigns, you’ll be reaching a big pool of highly targeted people who are interested in what you’re selling.
It’s from that big pool where your 60 new customers will come from.
The question is, does that pool need to be 1,000 people?
Or 3,000 people?
Maybe 5,000 people (or even more).
Figuring out website traffic estimates can be tricky and complicated.
If you do it wrong, you’ll end up spending way more money than you need to
But in the end, it’s a crucial component towards determining your pay-per-click campaign budget for 2017.
If you need help with this part, make certain to contact us today.
What are you willing to spend per click?
Our previous infographic looks at what you need to determine when setting your budget.
Two important factors you need to consider include:
- Maximum: The maximum cost-per-click (CPC) you’re willing to pay
- Daily spend: How much you’re willing to spend each day
Using our kitchen home improvement contractor example, here’s another way to look at it:
- Would you give a very interested customer $1.00 to click on a PPC ad and visit your website if there was an above average chance they’d spend $20,000 with you?
Yep. You would.
Extrapolating that further, would you spend $5,000 in order to generate $1,200,000 in revenue?
Yep. You would.
Budgeting for PPC
That, in a nutshell, is how to budget for pay-per-click:
- Set S.M.A.R.T. goals
- Estimate required website traffic
- Determining cost-per-click
It seems simple.
But in reality, a lot of thought needs to go into it.
Otherwise, you’ll spend money on ads which too many of the wrong people will see or not enough of the right ones will click.
Need help budgeting for 2017?
Register for the next WEB ROI webinar, “What’s Google Doing in 2017? What Should I Do?“
Need help figuring out the right pay-per-click budget for you?
When it comes to PPC campaigns, it isn’t about simply throwing money around aimlessly.
And it isn’t about doing it on the cheap, either.
It’s about spending the right amount for your business needs.
We can help you determine what that is.
To start, you can contact us for a FREE consultation. We’ll meet, talk about your growth plans and show you how pay-per-click can help you reach them.