What should your PPC Budget be?

PPC budget.

Those two words are enough to make anyone shudder!

Budgets are usually met with confusion and a wide variation of advice (which isn’t always correct, or even helpful.)

At Infinity Digital, we are here to try and take away some of the stress and uncertainty surrounding the dreaded ‘PPC Budget’.

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Of course, the starting point every business should have is a subjective one; for instance, how big is your company? What are you looking to achieve? Do you have defined goals?

Your budget will vary depending on the size of your business; if you are a smaller company, your goals and budgets will be smaller than those of a larger company – and that’s okay.

No matter the size of your company, you’ll need to focus on what it is you want to achieve, your profitability goal, and your budget.

It’s usual that small businesses tend to spend between 3-5% of their gross revenue on marketing – but what do you need to take into account?

Things to consider when setting your budget for Google Ads

Search vs. Display Campaigns

What are you trying to achieve? This will be reflected by which Ad style you go for.

Automated Bidding

This removes the guesswork for you (and who doesn’t love that?) There’s no need to manually update bids on ad groups or keywords, and there is a variety of strategies to help you increase your visibility, clicks, and conversions.

Search Engine

Google has an 88% market share, whereas Bing and Yahoo only hold 2-13% and 1%, respectively. Due to this it is harder to rank on Google, but it does mean that you will be reaching a much wider target.

Identify your keyword themes by your intent

Which audiences are you looking to target? Are you trying to raise awareness, convert more customers? Consider every possibility of what you want to achieve.

We recommend no less than £7 a day for Google Search campaigns, and this will vary depending on your audience size.

And remember – you only need to spend £0.01 more to beat your competition!

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Budgets: Some Guidance

We’re not here to dictate what you should do, far from it.
We only want to help you to make the most of your marketing budgets, and to give you the knowledge you need to spend it wisely.

Unsure of how to work out a forecast? Google Keywords Planner is a tool you definitely need to have in your arsenal. The Keyword Planner helps you to create the right audience and to get your ad in front of them.

But what about Instagram and Facebook (Meta) Advertising?

Recommended budget amounts for Meta advertising are based on a number of factors, such as: a stable market; the competitiveness of your area; ad sets that gather more than 50 sales, leads or landing page views; and the country/location of targeting.

Meta advertising has a lot of benefits:

  • Social media ads don’t tend to be as competitive as Google ads, and you are usually able to reach a more specific audience, achieve better campaign results and be able to sustain these over time

Just like Google, Meta advertising implements Budget Optimisation to make the most of your spend.

But what about Budgets?

Taking all of the above into account, we have outlined some guidance for budgets depending on your target –

  • Lead Generation: £12-£13 per day
  • Video Views: £5 per day
  • Traffic: £7 per day
  • Brand Awareness: £7 per day
  • Conversions: £28 per day
  • Reach: £5 per day

We understand that there is a lot to take into consideration, and that it still may be confusing. Remember, the beauty of PPC is that it is scalable, and it can be measured and monitored from a variety of angles!

Interested in how we can help you make the most of your campaigns and budgets?

Get in touch today!

📧 hello@infinitydigitalagency.uk

P.S. If you’re unsure what to ask for when requesting a proposal, then Design Rush recently published a helpful guide called Digital Marketing RFP – How to Find the Right Agency for Your Business.