Thomas Coppen

Setting Your PPC Budget & Beware Of Agency Costs

Setting Your PPC Budget

In pay-per-click marketing, as with so many things in life, you have to spend money to make money.
The big question is, how do you figure out what you should spend?

Your monthly is a huge part of your PPC strategy, so whether you’re new to PPC or have been doing it for years, it’s worth taking a step back to figure out if you’re making the most of your ad spend.

The most important consideration for setting your PPC budget is your lead needs. You’ll need to sit down and figure out some characteristics of your leads, such as:

  • Lead Quality
  • Target Cost Per Lead
  • Buying Cycle
  • Visitor Frequency
  • Geographic Location

In terms of using PPC advertising, the monthly PPC budget you decide is crucial when considering the potential ROI of your advertising, which is the entire point!

A monthly PPC budget should never be set lower than £300, otherwise there will be little to no quality traffic.

It may sound promising with very little money being risked but will ultimately result in no return or a return that does not make PPC advertising worthwhile.

The £300 monthly PPC budget is merely a good suggested start up budget, however different industries require different monthly PPC budget amounts.

Industries which involve Software, Corporate Events, Private Equity… or any industry which has a very large contract value and/or high competition for business.

Beware Of PPC Agency Costs

Before choosing a PPC agency to manage your  that you can trust with your money, there are many things that you should be considering.

If a PPC agency quotes you an unrealistically low price for their services, beware!

How transparent are the agencies management fees?
One common practice of low quoting agencies is the use of a combined bill for the Google ad spend and their management fees, this is a major NO NO.Warning1
This indicates that the agency has garnished money from the allocated ad spend PPC budget. This is usually coupled with a limited report that does not show ad spend costs broken down.

Another practice that can result in money sneakily landing in a PPC agency’s pocket is the use of automated tools.

Google has a plethora of automated tools which usually results in ad spend rising fast. (surprisingly Google want you to spend more on Google AdWords… who’d of thought that?)

So these tools are used whilst the PPC agency gains the (not so) well deserved management fee.

Overall, for a PPC agency to provide optimal results the account should be managed daily and transparency should be at the fore front with all your dealings with them.

A reputable PPC agency typically will charge between £400 – £500 for an ad spend up to £1500 per month with London agencies likely to charge more.

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