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The exact amount to be placed on a CPC bid depends on the nature of the campaign to be performed. As the name suggests, advertisers with a PPC campaign need to pay each time someone clicks on it. It is the popularity of the keyword that is going to determine the cost you need to pay.
Below we have explained a framework that will allow you to calculate a realistic budget. This framework can be categorized into two points before testing and potential return on investment (ROI).
Level 1: – Tests
It is absolutely impossible to calculate the budget that should be sent right at the starting level itself. You must test many ideas and analyze the production to know the campaigns that could work and those who could not work. As an exception, you can initially determine the profitability of certain campaigns. However, this happens rarely when the competitive keyword level is low. Explore, test and check your campaigns by investing decent amounts in this phase without expecting a return.
Proper understanding of certain basic elements is important before testing your campaign.
Keyword CPC: – PPC Model Approves Approach, regardless of how often your ad appears, you only pay when someone clicks on it. The cost varies with keywords, and Google offers a plan of the amount you need to spend per click. For example, the keyword "sports shoes" and "bodydeodorant" sets the cost per click of 5 AED and 6 AED respectively.
Prepare a complete list of keywords that you want to test and use the Google AdWords Keyword Tool to calculate the approximate schedule for each keyword. Please note that it is just a plan and not a real cost. There could be an increase or decrease.
How long can a test phase?
The mistakes that many PPC campaigners commit to is limiting the testing phase. Although there is no specific test phase period and the limit values that are spent only during the testing phase, it depends primarily on the industry and keywords chosen. For keywords with increased search volume, results are visible in a short period of time. When the search volume is low, the test phase will be extended and as it will take time to understand an insight.
Prospective Sales Conversion Rate: – Get an estimated estimate by considering that 1 in 100 people would like to view the ad and click on it and another 1 in 100 people will be to be changed as customers. Although it's just a plan, in fact, your ad could control more or less traffic.
How to get a test plan?
The first is to determine the cost of password testing. If you're able to change 1 customer through 100 clicks, the cost of sales should be resolved by dividing your CPC by 1 percentage point. For keywords that cost $ 5 per click, the cost of estimated sales is $ 500.
Level 2: – Possible ROI (19459005)
test level, the goal is to increase your ROI from AdWords. Many people have doubts about how the investment will be taken in profitability level. If you assume that your ads are cost effective and equally optimal, you can inject more investment.
It's important to increase the quality of your ad text to increase your ad's Quality Score to reduce your CPC. On the other hand, it is equally important to focus on revenue per click. Earnings per click provide an indication of the amount your business can afford for each keyword. Your campaign is considered to be profitable when you pay less.
Knowing your potential profitability, it's time to build a business-centric PPC strategy for your business. And this should be very accurate and should have taken into account all factors obtained at the test level. The development aimed at should be in line with the overall goals. And only then it will be significant.
