How Much Should I Spend on PPC?

Pay Per Click is a form of online advertising where businesses will pay for each time someone clicks on their advert, whether that’s on Google, Bing or other search engines.

If you’re considering launching a Paid Search campaign for your business, then you are probably wondering ‘how much should I spend on PPC?’.

The truth is there is no easy, one size fits all answer. It varies from business to business and largely depends on your ultimate goal for the campaign and the volume of conversions you expect to receive.

Firstly, you will need to find out who your target audience is and how competitive the market is for the keywords you wish to target. The purpose of this is to ensure there are enough monthly searches to justify a campaign in your target location and to make sure the average cost per click and competition is not too high for your budget. 

Google Ads has a fantastic tool called Keyword Planner that can help you determine the right keywords for your campaign by providing you with traffic estimates and click costs. Typically, the most competitive and expensive keywords relate to insurance and financial services with many eCommerce businesses spending a lot less on PPC advertising. There are other tools which can be very helpful, such as Ubersuggest, Moz and SEMrush.

You will also need to determine how much traffic you would like to gain and how much you can afford to spend per lead in order to ensure it’s profitable for your business. For example, if you can handle 100 leads per month and your target cost per lead is £20 then £2,000 may be a suitable budget for your campaign.

Target Lead Volume x Cost Per Lead Goal = Monthly Budget

As long as your campaign is successful and generates a good return on ad spend, we would recommend spending as much as you can afford to on PPC and to regularly review your profit margins and spend.