How Much Does PPC Cost?

August 23, 2013 Published by ontarget

PPC cost

A popular question we hear today is How much does PPC cost? Unfortunately there is not one answer to this question.  The power of PPC cost is in the hands of the advertiser. We are able to set monthly and even daily budgets that fit the needs of our clients with a maximum cost per click by keyword. We have worked with PPC budgets ranging from $50 per month to $500,000 per month.

Of course there are bench marks when looking at PPC costs over the years. The below statistics provide a useful guidance with averages of approximately fifty advertisers on the Google AdWords ad network. These advertisers include companies in a variety of industries with a mix of local, national and international campaigns. This is not representative of PPC costs across all industries and certainly there are verticals with extremely higher PPC averages. It is still very interesting to analyze the trends over time.

PPC Cost

How much should I spend on PPC advertising?

A very important question you should ask when deciding to run PPC campaigns is  How much should I spend on PPC advertising? We can help you answer this question by following three simple steps.

  1. Keyword Research – We start by researching keywords that relate to your business and develop a list. Once we have the PPC terms we are able to estimate cost per click and amount of traffic for your targeted location or locations.
  2. Website conversion numbers – The percentage of visitors to your site that take action is considered your website conversion number. If 5 out of every 100 visitor purchases something on your site or fills out a contact us form your website’s conversion rate is 5%. Not too bad!
  3. SMART calculations – We do the math to estimate your cost per conversion by taking your estimated cost per click and factoring in your website conversion percentage.

Once all the steps are complete you can determine how much you should spend on PPC advertising by looking at your companies individual cost per conversion goals and ROI margin. Then create a PPC budget that you feel comfortable with. Ontarget specializes in PPC management and optimization. Contact us today to get your free PPC consultation.

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