How to set a Pay Per Click (PPC) Budget?

How to set a Pay Per Click (PPC) budget

One of the easiest marketing techniques to make money is to spend money and that is what pay-per-click marketing is all about.

How to determine what you are spending is worth?

Your monthly spending and annual spending need to be considered when you are working on your PPC strategy. When it comes to deciding your budget, you need to put your lead needs above the rest, which include quality of the lead, buying cycle, visitor frequency, geography, and target cost per lead.

Think along the following lines if you’re unsure of how to strategize target leads:

  • The number of leads that can be generated through PPC
  • Tracking the current conversion rates
  • Determining the value of a lead
  • The budget that you can afford

The following factors will affect the value of your leads:

  • Bounce rate
  • Precedence
  • Frequency of interaction
  • Geography

The quality of leads that you gain through PPC can be monitored and enhanced using segmentation techniques, including:

  • Filtering negative keywords that fail to convert
  • Adjusting your bids (considering the time of day and day of the week)
  • Site exclusions that control where your display ads would be displayed on the site

Segmentation techniques will help you to track if you are strategizing your budget wisely. Our PPC specialists at Seattle New Media can help you set up the best ad campaigns within your budget.

Tips that will help you to plan your Pay-Per-Click (PPC) budget:

1. Starting small

When you have a smaller budget, it would be easier to keep the size and scope of the account within your focus.

You can start by considering how much you can spend on a daily basis. (For a monthly budget of US$2000, you can the set daily budget at US$66 per day).

The daily budget should include all the campaigns that you’d be running for the account simultaneously. While you determine your daily budget, note that the budget for Google Ads and other channels would vary to accommodate strategies that maximize results.

But make sure that your overall monthly budget doesn’t exceed the daily budget X number of days in the month.

2. Focusing on important goals

If you have multiple goals for your account, you’d have to plan your budget accordingly. There are limitations to the goals you can pursue on a small budget.

Regardless of the budget limitations, you can pursue the following goals:

  • Leads
  • Sales and repeat sales
  • Product and brand consideration
  • Brand awareness

3.Include geotargeting as part of your marketing strategy

Geotargeting helps to manage a small ad budget and forms a crucial part of your marketing campaign. One of the best ways to maximize a small budget is by targeting only those locations that really matter.

For a relatively smaller geographic area, the traffic is also less, which means you need to find a balance between the geography and budget.

SEJ suggests including negative locations (where your business is irrelevant) to prevent stragglers from viewing your ads

4. Scheduling ads

With ad scheduling, you can control the budget by scheduling ads for certain days and at certain times of the day. If your business functions during specific hours of the day, it would be ideal to schedule your ads whenever you are open for business

5. Understand how match types work

Match types are an important factor to control the budget if you have limited funds.

Research and identify the match types and how these play a role in triggering ads. One of the best ways to test different match types is to combine ad scheduling and geotargeting.

You will have to experiment with a couple of options before you finally find out what works best for you.

6. Stick to certain cheaper options

If your business is on a small budget and has challenges with creating landing pages (and testing its versions), then maybe you can set up a call-only campaign.

7. Measure performance

The PPC platform and website analytics would enable you to set up tracking to analyze and track the performance. Based on the results, you can make further decisions on the areas where you need to optimize the account.

8. Use the right keywords, preferably longer tail keywords

High-volume keywords have a higher cost-per-click. It is recommended that you target long-tail keywords (that are unique as well) when you are on a limited budget to ensure effective competition.

Use your analytics account to research long-tail keywords that will drive organic searches to your website.

Along with the right keywords, it is important to focus on negative keywords as these help in controlling budgets.

Think of all those negative keywords that might activate ads inaccurately. Based on the query reports, look for irrelevant searches that have led to the maximum number of clicks.

You can create lists and apply. Keep repeating these steps.

9. Avoid Dynamic Search Ads

If you favor Dynamic Search Ads, it is high time you reconsidered these. These ads are optimized on the basis of keywords (from the content) on your landing page. The specific keywords chosen by you do not apply to these ads.

Dynamic Search Ads might seem to be a convenient option; however, these lead to irrelevant impressions and clicks, driving up the daily budget.

10. Consider ad extensions

With ad extensions, you can include additional information along with the ad. These details are usually the ones that do not fit into the body of the ad. Such information includes local address, phone number, customer reviews, structured snippets, site links, and images.

Google’s dynamic ad extensions are automated extensions, displaying details from your website that are added to your main ad text.


What should be an ideal PPC budget?

If you are benefitting from your campaigns and if your revenue is higher than the costs, then why bring the budget down?

To get started, use the above tips and get an estimate of how much you can spend. Brainstorm and see if you really should be investing in PPC before you go ahead.

If you need assistance to set up a PPC campaign, our PPC experts can help. At Seattle New Media, we offer all kinds of digital marketing services to fulfill your business requirements. For a consultation, contact us today.

‍Marketing Team