How to Set Up A PPC Budget

At its core, a PPC campaign is designed to be the best friend that a digital marketer has ever had. Unlike like a billboard where you’re paying for a piece of marketing material for a certain period of time regardless if anyone sees it, pay-per-click lets you pay for an add only when someone actually clicks on it. Conceptually, this means that you’re not spending money that you don’t need to, which ultimately goes a long way towards increasing both the effectiveness and the ROI of your campaign. Right?

Not necessarily.

There are still a number of mistakes that can be made with a PPC campaign, chief among them failing to set a daily budget at the outset. A critical component to monitor vigilantly during a PPC campaign is CPC, or “cost-per-click.” As its name suggests, this is the amount of money you’re spending every time one person clicks on your ad.

One of the keys to both fixing high CPC and setting an ideal daily budget rests in learning how to determine a daily budget properly. Remember a daily budget is supposed to provide enough money for the number of potential clicks an ad can receive based on the traffic generated by the targeted keywords. That is why keyword research is so critical. Our process includes looking at the estimated monthly searches and impressions to the monthly estimated acquisition value for each term or phrase.

This is a reliable equation for figuring the monthly cost for each of your keywords.

Take the estimated monthly search volume multiply it by Avg. CPC times an estimated CTR. Also, make sure to factor in seasonality, or any special promotions, which may play a larger role in the monthly search volume.

We’ve estimated a 3% CTR which only applies to non-branded terms. Branded terms or branded campaigns should ideally have a CTR of 15 to 25%. After you’ve added up the cost for your keywords divide by the days in the month or for the length of your campaign.

Setting Up Automated Budget Rules

Once you’ve set up a daily budget, it’s time for rules, because what good is a budget if you don’t stick to it? Setting automated rules is an important factor in effectively executing PPC campaign budgets.

Let’s say you’re running a campaign with a daily budget of $1,000. To make sure you don’t go over or under, you can set up a rule to get an email every day at noon if you’ve already spent more than $500 that day. This way you can adjust spending and not blow through your budget.

Here’s a quick breakdown on how to set up an automated rule for this scenario –

  • Choose All Campaigns in the left side of your AdWords Count.
  • Choose the Campaign you want to more closely monitor.
  • Use the Automate button drop-down above campaign details. Choose Send email when.
  • In the Apply to area click Selected Campaigns.
  • Enter the cost or amount (in this case $500) the Requirements section, enter Cost > $500.

AdWords Budget Rules

  • Set the frequency to Daily and include the time using data from the Same day.
  • Don’t forget to Name and Save the rule.

With a proper understanding of PPC budget math and how to implement better PPC budget monitoring, you’ll be on your way to PPC Success. If you have questions about PPC budgeting or setting up automated rules get in touch with the PPC team at Evolve.

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