Pay-per-click marketing is difficult to master. It can either boost your company’s profitability or drain its resources (if the campaigns are not optimized correctly). There are also so many variables to consider, like how much to spend on search versus display, and whether your PPC is focused on e-commerce or lead generation. To avoid losing money on PPC, it is worthwhile to take a careful look at how you are spending your PPC budget and what you can do to improve it.
The first question to answer in figuring out the best PPC budget for your company is what do you need to generate more quality leads? To determine this, consider the essential elements of leads:
Starting with these questions can help you paint an accurate picture of what your site’s activity currently looks like. Before you can envision a goal and create a path to get there, you need to know where your beginning point is.
Once you gather this necessary information, you can distinguish your leads in terms of profitability and define your target lead. Some factors to consider in deciding what your target lead is includes the following:
These are more difficult questions to answer but taking the time to do so will pay off as you enter the answers into formulas designed to make the most of your PPC budget. For example, you need to calculate how many new clients you need each month, what your close rate percentage is, and how much your cost per lead is. Using these numbers, you can figure out what your PPC lead goal should be and how much you need to spend to reach it. Let’s break that down into five steps with an example:
Fine-tuning your company’s PPC budget is an excellent way to ensure that your company is in a fiscally responsible position, as well as to analyze its marketing strengths and weaknesses. Rather than just looking at how many leads you’re generating, for example, you can break down the quality of those leads and hopefully discover ways to improve not only the quantity but also the quality of the leads. Some of the considerations that can help you do that include the following:
After analyzing these factors, you’re in a much stronger position to create an optimal PPC budget that gives you the most marketing power for every dollar you spend. The investment you make in smarter marketing practices will pay off as your site becomes more productive in attracting and retaining users. Additionally, your site will generate more quality leads, and your conversion rates will increase as you analyze and then adjust the way you spend money on PPC. You will also have peace of mind knowing that your PPC budget is being spent wisely.