PPC is not easy as 1,2,3, so SEOversite is here to help break it down for you. We know you are still stuffed from our last Pay Per Click (PPC) article, covering impression shares, click through rate, time on site, and conversions. In round two, we’re dissecting said stuffing — now that you know the “click” part of it, read on to examine the “pay” aspect…
Budgeting for Your Pay Per Click (PPC) Campaign
Let’s return to our fictional campaign John’s Stuffed Animals. We have a new line of stuffed dolphins we are looking to launch. After considering our sales goals and marketing budget, we are comfortable spending $10,000 total on a campaign to launch Dolly the Dolphin. Seems like a lot of clicks, but there are more components we will need to budget for.
- Landing Page
First we will need a quality landing page that showcases Dolly in all of her glory. Afterall, we are paying if the customer clicks, we want those clicks to convert! We have budgeted $3000 for our web team to design a page that makes as big of a splash as Dolly does.
- Per Click Spending
Our web team has completed the landing page, and now we need to figure out what we will spend per click. Depending on location, search volume for those keywords, specificity of phrases you might be looking to target, etc. the price goes up. The rule of thumb is the more competition, the more expensive. The more specific you get in terms of search phrases your cost-per-click will generally decrease. However, this won’t necessarily bring you better results. Work with your web team to figure out the best keywords and phrases to target within your budget.
Because you only pay when someone clicks, there is no way to know for sure how successful your choice of key phrases will be until you begin the campaign. We may have set our monthly budget at $3000 for a two month campaign, but if the campaign is not attracting clicks, we may not spend the entire budget. Alternatively, if the campaign is popular it may be used within the first two weeks. Your web team should be working to hone the campaign and keywords to find the best return on your click investment.
Your Web Team is Not Working on Your PPC Campaign For Free
Nothing in life is free, and managing a PPC campaign is no different. Our $3000 per month budget goes directly to Google, not the web team. Most web teams will charge around 20% of your PPC spend (not budget!) as a management fee. In our case, our PPC campaign to launch Dolly was a success and we spent $2997 in PPC for the first month, which means we will also be paying an additional $600 in fees to the web team for their work managing the campaign. We are happy to spend the money since they A/B tested different keywords, optimized the campaign, and showed me through reports that our conversion on the campaign is 2.6% — pretty good work from the web team!
Clicks to Conversion
The first month of Dolly’s PPC campaign is in the books — time to see how we performed! We measure this with Cost-per-Acquisition (CPA) which is a fancy way of saying “How much did we pay for those visitors who actually bought something”. To calculate CPA we need divide our total spend ($2997) by that number of users who bought something through the PPC campaign. With 200 sales we could link to the campaign, we can see that our CPA is $14.99 ($2997/200). Each Dolly the Dolphin sells for $39.95 — after 30 days of our 60 day campaign we can see revenues have nearly covered the cost of the campaign. We now know we are on the right track and will work with the web team to see if we can get even better results next month. We also know everyone loves Dolly as much as we do.
If this all still seems overwhelming, reach out and SEOversite can help! We can find a superb web team to craft and execute your PCC. Email Guardian@SEOversite.com or call 305-455-0720 for more information on how SEOversite can help.