Determining Your PPC Ad Budget


Determining your PPC ad budget is immensely important to the prosperity of your PPC ad campaign.  It could mean the difference between developing a thriving, profitable campaign and running out of money.  Unfortunately, very few internet marketers know how to accurately determine their PPC ad budget.  But don’t be discouraged because this article will show you exactly how to do this.

Realizing Your Assets

It is integral to know your assets before you begin your PPC ad campaign.  You should come up with a reasonable amount of money to devote to your pay-per-click campaign, giving you enough breathing room to reinvest some capital if you ads are performing better than expected or to pause or edit some ad groups if the ads are under-performing.  Whatever happens do not devote so much of your budget to PPC such that you run out of money if your ads do not perform as well as you expect them to.

Knowing the Duration and Scope of Your Budget

As a PPC advertiser, you must decide whether you what to set a daily or monthly budget for your campaigns.  It is generally a good rule of thumb to to set budgets at campaign level per day rather than per month.  If you opt to set your campaign budget by month, the search engine does not distribute your ads out evenly over that month because they can never know exactly how many clicks you will receive.

Considering Scheduling

There many be a certain time in the month where your ads get more clicks (i.e. the end of the month when people usually get paid).  If this is the case, you must take this into consideration when determining your budget.  You don’t want your PPC budget to run out just as your potential customers are looking for your product or service.

Sticking to Your Budget

Once you have determined the best PPC budget for your particular business, I encourage you to stick to it.  Don’t go back into your savings if your PPC campaign is loosing money.  In this case you should retool your ads instead of spending more money on something that obviously is not working.