Budget for PPC Campaigns February, 2013

Pay-per-click (PPC) marketing can be very profitable and should be incorporated into your marketing plan. ??It is important to allocate a budget for PPC campaigns because they have become a significant marketing channel for online stores.

How to Determine Your Initial PPC Budget

If you are unfamiliar with PPC campaigns, determining an initial budget may be difficult.?? Determining how much you should pay per click will enable you to set your desired budget based on how much traffic that you want to lead to your site.

Adwords??? free traffic estimator can help determine the initial budget of your PPC campaign.?? This tool compares the cost of the campaign to the cost of each click and the conversion rate of your website to help you decide how much to spend. This is just an estimate.?? You have to know the conversion rate of your website for this tool to work.

If you find that your cost per click can be profitable, you can allocate a good budget on your PPC campaign. ??If the cost per click is too high and your conversion rate is low, you should test it out first and allot a small budget on your PPC campaign.

Base Your Budget on Profitability

You should make sure that your campaign is profitable. If it is not, you should focus on other campaigns that offer higher profitability. This way, you won???t spend too much money on unsuccessful campaigns.

Don???t Cap Profitable Spend

If your campaign is successful and profitable, don???t limit your budget. ??Buy as much traffic as you can if your PPC campaign is making money.??

But be sure that you track the results of your campaigns. ??If you can get profitable results from a cheaper campaign, you may want to prioritize so that you can get high profits with the least spending.

Optimize Your Unprofitable Campaigns

Before you abandon an unsuccessful campaign, determine what makes it unprofitable so that you can optimize it. Enhance the campaign first before you make any further decisions.

Limit your budget on unsuccessful campaigns while you are determining the problems. ??Allocate more money on profitable campaigns.