{"id":587,"date":"2017-12-05T13:47:38","date_gmt":"2017-12-05T13:47:38","guid":{"rendered":"https:\/\/www.searchenginewatch.com\/2017\/12\/05\/ppc-budget-strategy-tips-for-success-on-a-limited-budget\/"},"modified":"2020-02-18T02:00:37","modified_gmt":"2020-02-18T02:00:37","slug":"ppc-budget-strategy-tips-for-success-on-a-limited-budget","status":"publish","type":"post","link":"https:\/\/searchenginewatch.com\/2017\/12\/05\/ppc-budget-strategy-tips-for-success-on-a-limited-budget\/","title":{"rendered":"PPC budget strategy: Tips for success on a limited budget"},"content":{"rendered":"

You don\u2019t need a large budget for an effective PPC<\/a> strategy. Here\u2019s how to maximize the success of your PPC campaigns regardless of the size of your budget.<\/b><\/span><\/p>\n

The budget of a PPC<\/a> campaign can play an important role in its performance. However, it doesn\u2019t guarantee successful results without a proper planning first. <\/span><\/p>\n

It\u2019s common to believe that the bigger the budget for your PPC<\/a> campaign, the better the results. But small businesses, or those without a lot of resource to allocate to PPC<\/a>, may not always have the option of increasing budget. So how can you be as successful as possible with what you have?<\/span><\/p>\n

This article will set out how you can manage your PPC<\/a> strategy in a way that maximizes the benefits of your budget<\/a>, no matter what its size.<\/span><\/p>\n

Note: This article is an updated version of\u00a0John Gagnon’s excellent piece,\u00a0PPC Budget Strategy 101<\/strong><\/a>, and incorporates\u00a0several of his insights<\/a>.<\/em><\/p>\n

Set clear goals for your campaign<\/b><\/span><\/h2>\n

Forward planning is critical when getting started with PPC<\/a>.\u00a0Having a pre-defined\u00a0outcome for your paid search campaign will help you to avoid over-spending and incurring unexpected extra costs<\/span>, so the first step is to set your goals. <\/span><\/p>\n

Decide on what you\u2019d like to achieve with your campaigns and how you\u2019re going to achieve it.<\/p>\n

Estimate your\u00a0budget<\/b><\/span><\/h2>\n

Once you\u2019ve set your goals, it\u2019s time to decide on the initial budget that you\u2019d like to use for your campaigns.\u00a0<\/span><\/p>\n

The first question is to decide on the number of leads that you\u2019d like to gain through PPC. The answer should be aligned with your available\u00a0resources and the goals you set in the last step.<\/span><\/p>\n

The next step is to make sure that you\u2019ve clearly defined what counts as a lead for your business before you start calculating the CPA (cost-per-action) to expect.<\/span><\/p>\n

Wordstream<\/a> has presented this process in a graphic that explains how your expectations for the number of leads and the conversions can help you determine your PPC budget.<\/span><\/p>\n

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For example, if your client goal is to gain 250 new ones per month and your current close rate is 15% with a cost of $25\/lead, you will need a budget of $41,666 per month to generate 1,667 PPC leads.<\/span><\/p>\n

In this case, a quick solution is to use your budget in campaigns that involve lower CPA to increase your chances of higher success.<\/span><\/p>\n

Be strategic with the allocation of your budget<\/b><\/span><\/h2>\n

The next step is to aim for an improved CPA. A cost-efficient CPA helps you become more strategic with your PPC campaigns, and allows you to determine the most effective ads to apply your budget to.<\/span><\/p>\n

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If you want to lower the CPA, then you need to:<\/span><\/p>\n