How Much a Startup Should Spend on a PPC Campaign?

Do you have a brilliant business setup online and are ready to spread the word? Are you looking to drive some serious traffic and turn those clicks into customers? But then came up a budgetary roadblock. How much should you spend on a Pay-Per-Click (PPC) campaign?

First things first, there’s no one-size-fits-all answer to this question. The budget for your PPC campaign is as unique as your startup, and it depends on many factors, like your company size, marketing strategy, and many more.

Are you aiming for brand recognition, leads, or sales? Hiring a PPC expert can help you maximize the budget and make sure those clicks are worth the bucks you spend.

Benefits of PPC Advertising

When it comes to PPC advertising, it can quickly become a game-changer for businesses. A whopping 74% of brands agreed that PPC was the driving force behind their success. Here are some major benefits of PPC advertising.

  1. Cost-Effective: The level of control PPC campaigns offer is remarkable. You decide how much you want to spend and where you want to spend. This allows you to ensure that you’re getting the most out of every PPC campaign.
  2. Provides Warm Leads: PPC ads connect you with your target audience exactly when they’re on the hunt for what you’re offering. This makes them more receptive to your products or services and has a better chance of purchase.
  3. Instant Website Traffic: Organic marketing can give results, but they are very slow. However, PPC ads help you climb the search rankings way faster. This means you get more traffic on your website from the get-go.
  4. Good Return on Investment: PPC campaigns are measurable, which in turn allows you to keep refining your ads until they’re not just good but fantastic. This is how many businesses consistently produce a positive ROI.
  5. Easy Ad Creation: PPC campaigns don’t need heavy marketing skills to make the ads shine. The process is quite straightforward and is easily understood and used by every business, big or small.
  6. Diverse Targeting Options: There is a huge array of targeting options, including keyword targeting, geographic targeting, demographic targeting, device targeting, language targeting, remarketing, and placement targeting.
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5 Factors That Influence Your PPC Campaign Budget

How would you know how much money you need for a successful PPC campaign? The cost of your PPC campaign hinges on a variety of factors. These factors include:

  1. Size of the Company: The larger the company, the more extensive budgets they can afford to work on their PPC campaigns. As a startup, you need to assess how much you can shell out depending on your revenue and cash flow.
  2. PPC Campaign Goals: The objectives you set at the beginning of your campaign will impact your spending. If you aim to achieve specific targets, it may require a specific budget.
  3. Industry/Competition: The industry you operate in can significantly affect your PPC expenses. Some industries are highly competitive, which can result in a spike in the cost per click.
  4. PPC Campaign Strategy: Different strategies have different approaches. Each approach will have varied budget requirements to achieve your goals.
  5. Retargeting: Retargeting allows you to show ads to people who have previously shown interest in your business while browsing other websites. The cost of these are lesser than standard PPC costs and help businesses reconnect with potential customers. They assign about 10 per cent of their PPC budgets to it.

You need to evaluate your overall circumstances to determine the right budget for your PPC campaign.

PPC Pricing on Different Advertising Platforms

Once you set your PPC campaign budget, you need to decide which online advertising platform will help you make every penny count. Here are the two widely used advertising platforms and their inner workings.

Google Adwords

For PPC campaigns, Google Adwords is used by 80% of global businesses. The cost of PPC advertising on Google Ads depends on the keywords you select for your ads, the bid you set for each click, your ad’s relevance to the keyword, and the level of competition for keywords in your industry.

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On the Google Search Network, businesses should expect to pay $1 to $2 per click on average. At the same time, Google Display Network is typically the cheaper option, costing less than $1 per click.

On Google Ads, your budget stays flexible and totally under your control as you can allocate daily budgets for different campaigns based on their importance. You are also in charge of when and where your ads appear by using Google’s geo-targeting features. It also allows you to control the kinds of mobile devices you want your ad to be displayed on.

Microsoft Advertising

Businesses also have the option to advertise through Microsoft Advertising, earlier known as Bing Ads. It is quite similar to how Google Ads works in terms of the bidding and auction model. Even so, Microsoft Advertising comes with a perk of low pay-per-click costs, but it is not used by many.

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On Microsoft Advertising, businesses should expect to pay approximately $1.54 on average. Using this, companies can maximize their online advertising efforts while maintaining cost efficiency.

Bottom Line

For a business that is just starting, having a well-defined PPC budget is not just an option – it’s a necessity. It will help you capitalize on many opportunities and help your business reach new horizons. By efficiently determining the expenses and allocating funds to address your PPC campaign needs, you can potentially make a monumental impact on your business.

But when it comes to creating and managing a PPC campaign, experience matters. If you hire a PPC expert who has worked with using the most effective keywords to drive traffic and sales, you are in good hands.

An expert can offer you the insight you need to ensure your campaign captures the right target audience. It is not about working harder, but smarter, to achieve the results you desire.