Many businesses struggle to define a proper PPC budget. Most often budgets are just pulled out of “thin air.” This article will give you a simple strategy for creating a pay-per-click budget to run on Google AdWords.
Define Your Goalswhat are your goals
Clearly defining goals is KEY. I’m sure that no one is interested in spending advertising dollars for fun. Clear goals will help you make smarter decisions once your pay per click advertising campaigns are running.
Here are a few key questions to ask yourself:
What is the lifetime value of each customer you gain?
How many customers do you hope to acquire and in what time-frame?
Is there a limit to your marketing budget?
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Are you committed to making ppc advertising a staple of your overall marketing strategy or is this just a small test?
Once these questions are answered you can start to create a budget.
Two key components that determine the success of a ppc marketing campaign is your CPC (“cost per click”) and Conversion Rate.