BUDGETING FOR YOUR PPC CAMPAIGN

Your budget will depend upon the competitiveness of your business niche. Click costs are calculated on a keyword basis and the demand for each keyword phrase. While the costs can vary, we have seen phrases that generate good traffic range from 50¢ to over $100 per click!

Many businesses begin with a monthly budget based upon the competition. The budget is divided into a daily ad spend limit which allows the budget to be spread out equally over 30 days. Without a limit, the clicks and costs can be shockingly high. If this occurs before you have determined your money keyword phrases, it can be a financially painful experience.

WHAT TO WATCH OUT FOR WHEN CHOOSING A PPC RESOURCE

What we noticed most when discussing our clients’ previous PPC experiences was that most vendors will usually only send traffic to the home page. Most of the clients had no idea of how much traffic they were receiving that actually converted into customers. Vendors would show them the traffic statistics and say, “Look how we are delivering for you.”

To be fair, a vendor cannot be responsible for your business, what you sell, or if people will buy it. So it is safer and easier to just send traffic to your site. With this approach, the results can be disappointing as there is no conversion tracking.

When you hire a PPC firm, they should advise you on the way a proper PPC campaign needs to be incorporated into your online marketing and advertising campaigns. Even if they do not provide you with landing page support, they ought to instruct you on how it should be done correctly. They can even recommend a web designer to create your landing pages. However, the web designer should understand the function of a landing page and be able to build it with the proper layout and call to action. What you don’t want is someone who can just create a standard web page and has no idea about how a landing page functions.

PPC FEE STRUCTURES

There are a variety of ways that PPC firms charge. The following are the most common:

• Set up Fee | Fixed Monthly Charge

• Set up Fee | Monthly Management Fee

• Set up Fee | Monthly Management Fee | Percentage of Ad Spend

• Set up Fee | Mark up click cost

Set Up Fee

The set up fee is charged to create your PPC campaigns and ads within Google and the other search engines where you will be advertising. This is a one-time charge, although sometimes it is waived in order to get your business.

Fixed Monthly Charge

This is a program that charges you a fixed monthly amount and includes the PPC budget and management fees. Many vendors have you pay Google directly and invoice you separately for the management fee.

Monthly Management Fee

This is charged to monitor and manage your PPC campaigns.

Percentage of Ad Spend

In addition to the monthly management fee, many firms will charge a percentage of how much money you actually spend on your PPC campaign. This can add an additional 5 to 10% cost to your PPC budget.

Mark Up Click Cost

Rather than charge a monthly management fee, many PPC firms will mark up the cost per click. For example, if your actual click cost is 52¢, they will charge you 55¢ or so. Google has cracked down on the historic price gouging and if you select this pricing model, then make sure you work with a reputable firm that is Google certified.

As mentioned above, sometimes smaller firms will establish a PPC account for each search engine in the client’s name. This allows you to directly pay Google and the others for your ad costs using your credit card. The set up and management fees are paid directly to the PPC firm.

FACEBOOK PPC ADVERTISING

You can also run a PPC advertising campaign on Facebook. However, it works differently than the keyword targeted ad campaigns that were described above. With Facebook, you determine your demographics and the ads are served based upon your requirements. You can include gender, age range, location and even topics of interest if available; Facebook then informs you of the amount of traffic available based upon your criteria. Obviously, narrowing the criteria lowers the traffic amount, so it is better targeted.

It is best to test a small campaign to see if the Facebook advertising model works for your business. You should set up a separate landing page for your Facebook ad traffic to measure the results separately from your other PPC campaigns.

 

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