What is a Reasonable Monthly Budget for a Pay-Per-Click Campaign?
One of the most frequently asked questions we receive is, "What is a reasonable monthly budget for a pay-per-click (PPC) campaign?" The answer isn’t straightforward, as the appropriate budget can vary significantly based on several factors, such as the market you're targeting and the competitiveness of the keywords.
Market Differences and Cost Per Click (CPC)
The cost of keywords can differ greatly between markets. For instance, the CPC for a keyword like “make a website” is considerably higher in the United States compared to Australia or Mexico. This means that while a $100 monthly budget in Mexico might be sufficient, it could be equivalent to a $1,000 budget in the United States, given the higher average CPC in the U.S. market.
Recommended Budget for U.S. Campaigns
In the United States, we generally recommend a minimum budget of $250 per month for PPC campaigns. At this budget level, campaigns are more likely to gain enough traction to generate consistent sales and leads. Additionally, a $250/month budget allows for gathering meaningful data, which is essential for determining what strategies are working and what adjustments need to be made.
Smaller Budgets: $150 or Less
This isn’t to say that campaigns with smaller budgets, such as $100 per month, won’t work. However, with a limited budget, the number of keywords you can effectively target is constrained. This makes it challenging for all the keywords in the campaign to get clicks.
For budgets of $150 or less per month, we recommend focusing on a small set of keywords that clearly represent your products or services. This strategy ensures that each keyword gets enough clicks to allow for effective evaluation and optimization.
What is a Good Campaign Mix?
To optimize your PPC campaigns, here’s what we recommend:
$250 per campaign as a starting budget.
20-40 relevant keywords that closely align with your business offerings.
3-5 ads with different messaging to test which resonates best with your audience.
1-3 months to gather enough data and insights to determine what is working and make necessary adjustments.
Realistic Expectations
One common misconception about paid search advertising is that results are instant and measurable. In reality, search engine results don’t happen overnight. There is a delay factor involved, and each account and industry behaves differently.
As a general guideline, we find that it typically takes 5 to 10 weeks to start seeing results. The first couple of months are crucial for testing and identifying successful strategies, which we then build upon to achieve results.
Need Help Deciding on Your Budget?
If you’re unsure about which budget or package is best suited for your needs, don’t hesitate to reach out to us. We’re here to help you evaluate your options and determine the most appropriate budgeting strategy for your PPC campaigns.