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In this video, Chris from the WebFX Internet Marketing team reveals the formulas for calculating your PPC campaign investment.Transcript:Your investment is precious, and you don’t want to waste it on an underoptimized PPC campaign.Understanding how to calculate a PPC budget is crucial for determining the necessary investment to achieve your business objectives.That’s the focus of this video, where I’ll break down the components of a PPC budget and strategies for maximizing your spending.If you need to skip to a specific part of the video, the timestamps in the description will guide you.UpCity provides a valuable revenue-focused process on its website for calculating your PPC budget.You begin by determining the number of customers needed to reach your goals.The formula is as follows:
Number of Customers (NoC) = [Revenue target / Number of sales periods campaign will run] / Average Sales Per Customer
With this figure, you can then input it into the PPC budget formula, which is:
PPC Budget = [(NoC/ Sales Team Conversion Rate) / Website Conversion Rate] x CPC
If you already have a target budget and just need to know how much to allocate per day, here’s the formula for that. It’s much simpler.
Daily budget = Monthly budget / 30.4
Before moving on to the next video, I have a few tips to help you maximize your investment.Implement these tips to boost your return on ad spend (ROAS) from your PPC budget:1. Be flexibleYour campaign may be your team’s favorite, but it’s not guaranteed to resonate with your audience.Monitor your campaign metrics closely. If you see a lower-than-normal click-through rate, it may be time to reconsider your campaign.Refine your targeting to improve your campaign’s effectiveness.Use these tips to generate a higher return on ad spend (ROAS) from your PPC budget:1. Be flexibleYou and your team may be in love with an ad campaign, but it’s not a guarantee that your audience will love it.Pay attention to your campaign metrics. If you notice a lower-than-normal click-through rate, your ad campaign may not be performing as well as you’d hope.Adapt and optimize your strategy to improve results.
