It takes courage and proper analytical skills to manage an Adwords account. However, the most difficult task is budgeting. This is where you have to work out on what to spend on your Adwords campaign. Even experienced Adwords managers find this task hectic since every business would like to operate within a certain budget. It’s obvious that you will anxious whether you will get enough returns from the money that you invest in the campaign. This article will give you proper guidance on how to create an ideal budget for your Adwords campaign.
Know how an Adwords campaign will fit into your marketing strategy
It is not just a matter of entering your credit card details and activating the campaign. You need to know how Adwords campaign will fit into your existing marketing strategy. For instance, if you are already doing well on local SEO, you may decide to focus on spending more on display network and cut down on the amount that you put on the search advertising. This is because, with good organic rankings, your target customers will end up on your page without clicking on an ad. Your social media marketing performance can also help to determine the amount to spend on Adwords.
Start with a test budget
If you are going to run your first Adwords campaign, it is prudent that you start with a test budget. This is because you are literally in the dark whereby you don’t know what will work and what will fail. The test will give you an insight on what to expect from your campaign, the keywords that will convert, those that will fail and how your target market will react. Since the test is carried out on a tight budget, you will not be stressed by the expenditure and from its results, you will pick out factors that worked and drop those that didn’t work.
Know the amount of money spent by your competitors
You don’t have to use a spy to know the amount of money that your competitors are investing on Adwords. You can achieve this goal will the help of various tools such as Keyword Planner. Try to look for the keywords that they use then research on the amount that you will pay to use those keywords. From this data, you will be in a good position to figure out the budget that you will need to outdo your competitors.
Focus on return on investment(ROI) rather than cost
Putting too much attention on the cost may deprive you the benefits that come with running a successful campaign. As much as you would want to manage your costs, you should also focus on the amount that you stand to gain. If spending more will bring more returns, why should you limit yourself? Although the cost per click (CPC) plays a critical role in budgeting, you should put more attention to earnings per click(EPC).
Know KPIs that are important to your business
What are the goals of your Adwords campaign? Do you want to create more awareness about your business or do you want to increase the number of sales? Knowing the key performance indicators (KPIs) of a campaign can help you to plan your budget well.
Using these tips, you will be able to create a proper budget and run a successful Adwords campaign. Remember to be flexible by implementing necessary changes as you progress.