Pay Per Click (PPC) or Cost Per Click (CPC) online advertising is a great option for small businesses on a budget – you only pay for what you use. However, sometimes your campaigns don’t go as well as you want. Wordstream, which helps boost PPC rankings offers the following advice:
- Test Your Value. The key thing you want to be able to do with a new PPC account is test the effectiveness of pay-per-click as a marketing channel for your business. For this reason, you want to start by getting a sense of how much you’ll be paying for each click. AdWords’ free traffic estimator is a solid resource for this step.
- Base Your Budget on Profitability. Managers sometimes forget to focus on the most important metric: profitability. As with all things PPC and marketing in general, remember to base your decisions on profitability and the way your business actually runs. Areas of your account that are more profitable should get more attention and more of your budget.
- Don’t Arbitrarily Cap Profitable Spend. Many times advertisers set arbitrary numbers as a cap on what they’re willing to spend because it fits nicely into a larger marketing budget, but if you’re generating profitable leads and sales, your budget may be unnecessarily limiting. You might be able to just bid to profitability and drive as much traffic as you can buy.
- Don’t Just Slash Budget for Unprofitable Campaigns — Optimize Them. If your campaign is still running and isn’t profitable, that’s likely not something you want to address with budget. Rather, you should solve this issue through bidding changes, optimizations around Quality Score (better targeting and campaign structure), and so on.
- Understand Your Business’s Seasonality. Whether you’re just starting a campaign or have historical data to leverage, it’s important to know what your seasonal swings will be before you start to set budget. You might want to keep a tighter rein on your monthly budget for July than your budget in the winter months if you sell heating oil or ski trips.