Pay per click should be given the second most priority after search engine optimization. Search engine traffic is the highest traffic source for a marketer. Many sites don’t spend money PPC ads and marketing to gain that extra audience for your niches that SEO fail to deliver. Some sites spend too much and hence gaining a very low Return on Investment. Create an optimum PPC budget for your PPC campaigns which can get you high traffic and high return in the form of sales. This is a very irksome task but needs a lot of importance and understanding. Follow these steps and make an optimum PPC budget for your campaigns. But before that you need to have a vision for your audience. Here are the three factors that you need to consider to optimize your PPC budget.
1. Setting an Audience Goal:
The total amount of traffic PPC Ad campaigns generate completely depends on the site and the opportunities. You may have got the top rank in results page. But once you have gathered traffic and directed users to your site, give them a fresh content and some exciting offers. PPC can make losses if you are not able to convert your users into customers. It is your task to convince them and make them believe in your products and services. The dangers of PPC marketing are:
- Spend too much or too little money
- Dedicate too much or too little time
- Failure of testing your campaigns for improvement.
Some site owners do not prefer PPC campaigns because of the fear that they would spend too much money. They tend to focus on optimizing search engine results. PPC marketing can bring you a lot of audience. Even though it may cost you some money, but with proper planning you are sure to make profits. You need to determine the amount of traffic you want from your PPC campaign. That should be your audience goal.
2. Creating A PPC Budget
There are 4 simple steps for creating a budget for your PPC campaigns:
- Commence with a goal of producing at least 10 percent traffic from PPC.
- Identify your targeted keywords, which you want your user to enter in search query to find you.
- Determine an average cost of click for keywords. This is the bidding amount that you will be able to pay for each keyword.
- Multiply the audience goal with the average cost per click to arrive at the budget.
Let me give you an example of a site which generates traffic of 20,000 per month without the help of PPC ads. Now the company decides that it wants to put up a PPC campaign to generate extra 2,000 visits per month (10 % of 20,000). The average cost per click for the targeted keywords is 25 cents. Multiply 2,000 visits by 25 cents to set a budget of $500.
Once the campaign is set and out in the market, it’s very important to test the campaign with various options and track the results for continuous improved performance.\
3. Return on Investment:
Return of investment is the amount of revenue generate from the campaign. Obviously, for a successful campaign, ROI must be greater than the cost of the campaign- advertising budget, labor involved and other related expenses. One advantage of starting off with 10% audience goal is that it limits the risk of poor returns which may be because of poor implementation of campaign. Once the campaign’s performance is improved, increase your audience goal and hence increase your PPC budget. A variation of ROI is ROAS (Return on Advertising Spend). This is simply the gross revenue generated by the campaign divided by the amount of money spent on campaign.
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