How Much Should I Spend On PPC?

In case you have an interest in running a PPC campaign as part of your marketing and advertising strategies, you need to first see if running PPC for your company will be effective. If you don’t invest a good amount of money, you may not reach the period where your ads become profitable.

However, if you have a good budget, you would likely end up investing in different channels to generate sales as there aren’t sufficient relevant searches on a daily basis to fulfill your budget plan. Running a paid search agency Manchester, one question we are often asked is “how much should I spend on PPC and Google Ads.” Here is a detailed guide to the right budget for PPC and how much you should spend on PPC. Let’s start with how you can determine your PPC budget.

How to Determine Your PPC Budget?

When determining your PPC budget, first of all, you have to do your keyword research. In case you have evaluated moderately priced keywords for your kitchen, for instance, together with a massive number of consumers searching for those keywords every month. Secondly, you need to take a look at your customers, products and website analytics to identify the cost at which customers are becoming your clients and your conversion rates. The logic behind that is quite simple, the greater the rate of purchase with greater ticket cost on one sale means a higher budget to spend on your PPC strategy. 

Moreover, once you have actually figured out that your PPC campaign would be profitable, you can begin customizing the optimal budget. You must invest as much as you can, as long as you are profitable. In case your campaigns are generating more money than they are setting you back, you must continue what you are doing.

How Much Should You Spend on PPC?

In general, organizations must anticipate paying more than £1 per click to market on the search engine like Google. Small business and medium sized businesses spend monthly around £5,000 or £9,000 on PPC depending on the time. For bath and kitchen businesses sales often drop during winter as people are not renovating kitchens amid this period so it is a good time enhancing your budget in order to have constant sales. This can equate to around £50,000 to £100,000 annually.

Is PPC Profitable?

Since you have done your research, it seems as if there are a few reasonably priced keywords for your item along with a few people searching for those particular keywords every month. The next step in the process is to consider your customers, products and website analytics. For a few businesses, looking at items means average order size. For a few, it may mean lifetime customer value. Here, the takeaway is you have to identify the value of driving a potential customer to your site. Yes, PPC is quite profitable. Therefore, you need to spend a good amount of money on PPC campaigns!