Success in marketing is dependent upon a variety of factors, one of which is the utilization of paid search marketing campaigns. Paid search marketing gives you a lot of control over people’s ability to find your website when they’re searching. As an advertiser, you tell Google the search terms that you want your ads to appear with, and when someone searches for those terms Google shows your ad. If the searcher clicks on your ad, which is really just a link to your website, then you pay Google for your advertisement. This is known as pay-per-click.
In order to utilize paid search marketing campaigns to get the most return on your investment, you’ll want to set and allocate a specific budget. To do so, start by figuring some specifics out related to your unique business needs.
Inventory the success, or lack of success, of your previous marketing campaigns
Look over reports and data of campaigns you have done in the past. Were they successful? Did they help you reach your goals? Did they increase sales and/or brand awareness? If you have been successful with past marketing campaigns and the budget you used for them, then you can pretty much plan on following a very similar path. If however, you were less than successful and fell short of your goals, you’ll want to develop a new plan and budget to get you where you want to be.
Figure out what other similar businesses are spending on paid search marketing
It’s important to have some sort of knowledge of what your competition is spending in order to make sure you’re not spending too much or spending too little. Do a little research by looking up industry benchmark data and figure out what your competition is spending. That will help you to better plan your budget because you’ll know what to expect in terms of cost, and what you want to shoot for.
Determine your overall marketing vision
There are numerous other forms of marketing besides PPC search marketing, such as SEO, social media, and email marketing, and one way to figure out how much to spend on the various platforms is to determine a marketing vision. What are you hoping comes from your marketing? Are you looking to receive more website visitors? Increase sales? Gain contacts? Increase brand awareness? Your marketing plan should be personalized for your vision, and money should be allocated proportionately.
Use basic math and research data to set a competitive budget
Most businesses set their overall marketing budget by basing it on 2-15% of their revenue. Once you have figured out what your competition is spending on average, and you set your vision to know what your purpose is and what form of marketing you want to focus on, you will be able to set your budget.
If you want to be more competitive and have a strong marketing campaign, you will likely be at the higher end of that figure, spending closer to 15% of your revenue than 2%. If your vision requires a stronger focus on PPC search marketing, then a larger portion of that 15% will go to search marketing than to SEO, email, and social media. Once you have all the data and your vision, you’ve done the math and know how much to spend on marketing, and you’ve divided your marketing funds up properly between the various platforms, then you’re set up to run successful marketing campaigns that will give you the best return on your investment. Just keep your eye on changing data and updated reports to make any necessary adjustments. Remember that a large portion of a brand’s success is dependent upon strategic and carefully implemented marketing campaigns.