How Much Should I Spend on Pay-Per-Click (PPC)?

As digital marketing professionals, we get a lot of questions regarding pay-per-click (PPC) media like Google Search, Display, Remarketing, and Social Ads. Out of those questions, one of the most common tends to be, “How much should I spend on PPC clicks?”. Today we’ll answer that question in the same way we answer most of our clients. Chances are, the answer won’t be as satisfying as you’d like it to be.

What is PPC?

First, for those that are just starting their research on PPC, it is important to identify the most common mediums. The most common pay-per-click medium is Google Adwords. Within Google Adwords you can run Search campaigns where your text ads will show up in the Google search results. You can also run Display and Remarketing campaigns where you text or designed ads will show up on the Google Display Network. Finally, you can run a Google Shopping campaign that will show up in the Google Search results but as a shopping ad.

Bing Ads is another common pay-per-click medium in which you can run very similar campaigns. It is basically a mirrored version of Google Adwords but instead running on Bing and Yahoo.

Finally, there are social ads. These are paid ads on social media such as Facebook, Twitter, Instagram, Pinterest, and Snapchat. They all have their own nuances but the majority of them use ads that show up directly in a user’s feed, where the daily content shows up. This makes social ads an incredibly useful source of PPC budget. The user is highly engaged with their feed, meaning their engagement with your ad is likely to be very high.

Why Are These Considered PPC Ads?

These types of ads are all commonly grouped as “PPC” ads because they allow you to pay for them in the “pay-per-click” model. This means you can set your ads to only charge you when clicked, as opposed to viewed. Now, most of them also have the option to pay for impressions, but that is another story. PPC is very budget-friendly because you are paying for a user that actively engages with your ad, as opposed to paying for someone who could have hypothetically seen it.

How Much Should I Spend on PPC?

Now, to the question you’ve all been waiting for. Drumroll please. The answer is:

It depends.

I told you, the answer wouldn’t be satisfying. But let’s explain why that is the case.

There are innumerable factors that can affect your PPC budget. Among these factors are:

  • How much can you actually spend within your marketing budget?
  • Which PPC mediums you will choose to run on? The more you choose to run on, the more budget you will need?
  • What is the geotargeting of your campaign? Is this a national product or service or limited to a certain area?
  • What is the cost of your product or service? The higher the cost of your service, the more justified a high cost-per-click will be.
  • What type of competition is there already on these PPC networks? Are you competing for something that Amazon or other large retailers sell? More competition means a higher cost-per-click. Can you afford that? For example, a search ad for a “phone case” might cost $8/click; if your phone case sells for $10, it isn’t worth it.

As you can see, there is no perfect answer as to how much you should spend. The factors above are only a handful of things that can affect how much you need to budget. The good thing is, we can help you with that.

By | 2017-09-13T08:21:26+00:00 December 14th, 2016|Pay Per Click|0 Comments

Leave A Comment