How Do You Calculate PPC Budgets for Your Business?

Your money is valuable, and you don’t want to spend it on a poorly designed PPC campaign.
Learning how to create a PPC budget might help you determine how much you will need to invest to meet your company’s goals.
SEO agency, will demonstrate how to accomplish just that. I’ll walk you through what makes up a PPC budget and how to get the most bang for your buck.
If you want to find a specific movie portion, check the timestamps in the description.
Budgeting for PPC
PPC (pay-per-click) advertising allows you to just pay for clicks on your ads. In a moment, I’ll explain how to calculate PPC budgets. Let us start with the principles of PPC advertising.

PPC advertising is based on an online auction. When you begin a PPC campaign, you typically inform the ad platform how much you want to spend on the entire campaign. Then you set a bid for how much money you wish to pay per click. Keep in mind that you’re competing with other advertisers for the opportunity to reach your desired audience.
Because it is a bidding system, the cost-per-click (CPC) may vary. Factors such as ad quality, targeting, and competition can all have an impact on your cost per click.
To calculate the average cost-per-click (CPC), divide the advertiser expenditure by the number of clicks.

If you’d rather not estimate your costs manually, we have a tool that will do so for you.

Use a tool like Google AdWords Keyword Planner to determine the search volume and cost of the terms you want to target with your advertisements. Depending on your targeting, your ad platform may provide recommendations.

When using a platform like Google Ads to run PPC advertisements, you may find the average CPC in your campaign menu. On social media, you will most likely see your CPC on your site’s ad management interface.

You should also be aware of your marketing campaign’s ROAS (return on ad spend). While you should undoubtedly consider your budget, the return on investment for your advertising is equally important. If you notice that you’re spending more money on advertising than you’re making, you should rethink your strategy and how you’ve optimized things for your audience.

The ROAS is computed as follows: ROAS is total revenue minus total cost.
Setting goals remains an essential component of any campaign. Calculating the expenditure required to get there is a lot easier when you know what you want to accomplish.

Set SMART goals that are specific, measurable, attainable, relevant, and timely. It’s far easier to prepare for a 25% increase in website conversions in the fourth quarter of your business than it is to say that you want more traffic to your website. What is the overall purpose of this?
There is no single number that can tell you whether your PPC estimate is great or horrible. A successful campaign achieves its goals, delivers a positive return on investment, and adheres to budget.

I should emphasize that before you invest in PPC, you should analyze all aspects of your digital marketing. You don’t want to spend all of your money on advertising just to be unable to pay a website designer or SEO specialist. Consider the bigger picture.

Then I’ll get to the juicy details. Calculations were made.
How do you determine how much you should spend on PPC?
UpCity’s website provides a superb revenue-focused technique for evaluating your PPC expenditure. To attain your goals, you must first determine how many customers you need.
The formula goes as follows:
[Revenue target/number of sales periods campaign will run] divided by average sales per customer equals number of customers (NoC).

You may then enter that value into the PPC budget calculator, which looks like this: [NoC/Sales Team Conversion Rate] / Website Conversion Rate = PPC Budget CPC x
If you already have a target budget and only want to know how much to set aside each day, here’s the formula. It’s much easier.

Budget for the day equals budget for the month divided by 30.4.
Don’t start watching the video below yet. I’ve got a few tips to help you get the most out of your investment.

How to get the most out of your PPC budget
1. Be adaptive.
You and your team may like an ad campaign, but this does not imply that your target audience will.
Pay attention to the results of your campaign. If you notice a lower-than-average click-through rate (CTR), it’s conceivable that your ad language or inventiveness isn’t capturing the attention you expected. If your ad’s CPC is extremely high, you may consider fine-tuning your targeting.
It will take some inquiry and testing to determine the solution.

2. Refine your keyword choices.
If you’re targeting keywords, negative keywords can help you reduce the number of unqualified clicks on your PPC ads. When combined with a platform like Google Ads, this method ensures that you do not appear for irrelevant searches, saving you money and allowing you to reach a more likely-to-purchase audience.
If you need more information, we have a video on negative keywords.
3. Make use of automation
Robots are taking over! Just kidding. It is time for robots to take over!
Many advertising platforms include automatic solutions to help you get the most out of your campaigns. Make use of them! Allow technology to do some of the work for you, whether through automated bidding, testing, or reporting.

Finally, take advantage of Google’s Smart Bidding tool. Third-party solutions can help you increase the effectiveness of your social media marketing. Join forces with us and profit from our MarketingCloudFX technology.

How Do You Calculate PPC Budgets for Your Business?