Google AdWords is a powerful marketing tool for anyone looking to expand the reach of their business, but getting started can be daunting. There’s a big learning curve for beginners, but careful planning and research is key. It’s easy to throw hundreds or even thousands of dollars a month at your Google Ads budget and hope for the best, but that method doesn’t guarantee results.
CPC: Cost per Click. This is the amount you’re spending for each click on your Google ad.
CPA: Cost per Acquisition. This could also be displayed as “Cost per Result.” Simply put, this is the amount you’re spending for each “result” as determined by the goals of your ad. For most PPC ads, this is the cost per new customer.
Conversion Rate: A conversion is the completion of a specific goal on your website.
This might be filling out a form, downloading a piece of content, or making a purchase, for example. Your conversion rate is the percentage of people who complete this goal out of your total site visitors.
Customer Value: How much revenue does an average customer bring to your business? Understanding this number will help you determine a good target CPA.
Take a look at these terms and try to gather your current conversion rate and customer value data. This will help you determine your Google ads budget.
It’s important to have goals when it comes to your marketing strategy. Goals that are specific and measurable will prevent you from throwing away money on ads you can’t be sure are working. You may want your Google ads to generate 100 new customers each month, for example. Follow these tips when setting your Google ads budget and goals:
What keywords are people using to search for your product or service? Google AdWords allows you to create keyword-targeted PPC ads—that’s Pay Per Click. Some keywords will have a higher CPC (Cost Per Click) than others, depending on their search volume and competition.
How often does a website visitor become a customer? If you aren’t tracking conversions on your website, you’re missing out on valuable data that can help you make the most of your Google ads.
Using math for your marketing job? Your teacher probably warned you about this back in high school.
You’re ready to get started planning your Google AdWords budget. Take your time and don’t skip the research—planning is the most important part of creating a successful PPC campaign.
If you’re curious about how PPC ads can be part of an inbound marketing strategy, let’s talk!
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