How much should I spend on PPC?

So you want to invest in pay-per-click (PPC), but aren’t sure how much to spend to get the results you want? This is a common question we get and luckily, we have some answers to help you confidently move forward with investing in PPC!

Consider The Market

First things first – know the market that you’re in. What are the service buying trends in your area? What are your audience personas? Who are your competitors? It’s also important to consider the density of your area. If you live in a highly populated area, you may need to spend more on PPC compared to someone who is based in a rural location. You also want to have a plan for how much work your team is able to handle. Our sales team will take all these factors into consideration before recommending a starting budget based on your market. 

Look At The Data

Once we’ve analyzed your market, started running ads and established some informative data, your account manager can help determine if the budget should be increased or not. In full transparency, the cost will most likely be higher in the beginning. The reason being that new campaigns take time to build up data. Once we have enough data to make targeted decisions, your spend will be optimized for less.

We also encourage you to focus on the ROI of your spend. Sometimes, it’s easier to focus on the money that’s leaving your pocket vs. what’s coming in. In the end, the spend won’t matter if you’re consistently making more than what you’re putting in. If you’re paying for other services outside of PPC like social media or SEO, be sure to track the returns on those services as well.  

Focus On The Lifetime Value Of A Customer

More important than the quantity of leads you’re getting is the quality. One way to ensure quality is to create a spend strategy that focuses on the lifetime value of a customer. Sometimes you need to look at your ROI and justify spending more per acquisition, which is the ideal metric for determining an actual return on investment. After all, it doesn’t matter how many clicks you get on your ads or site if it’s not converting into sales.

If aiming for sustainable growth, you need to make sure you’re investing enough into PPC to be effective, but not so much that it hurts profitability. Our account managers are trained and certified experts who can help you determine a competitive budget to capture quality leads in your area.

If you have any more questions regarding budget and spend on PPC or other digital marketing strategies, contact one of our account managers at Spot On Solutions. They will be happy to answer any questions you have!