One of the benefits of using Google Adwords or other popular PPC platforms is that you have a huge amount of control over your budget. While this is helpful in allowing smaller advertisers the chance to compete with their larger competitors, it can also be a point of confusion for people new to pay-per-click advertising. It’d be easy to low-ball your initial PPC investment and play it “safe.” Let’s consider though, that playing it “safe” with a really low budget isn’t very safe at all. To be honest, it could be the most dangerous thing you could do with your account. Here’s why –
Extremely low budgets don’t give your campaign any room to thrive
This can kill your chances of succeeding before you even get started. It’s important to check the estimated price of keywords before you make a decision on what your budget should be. You can do this using the . Once you have an idea of how much your keywords may cost per click, you’ll have a little bit better of an idea of how many clicks you could potentially get for your budget.
Low budgets could mean your ad doesn’t get shown much in search results
If you primarily run a Search campaign (as opposed to a Display Network campaign), you run the risk of not appearing in searches when people are looking for your business. If you run through your low allotted daily amount early in the day,
you probably won’t show up in searches that occur later that day.
In highly competitive markets, budget is crucial to breaking into the market
Sure, you can run an ad on any budget, but that doesn’t mean you’ll be able to compete with companies that spend a significant amount more than you right off the bat. If you’re entering a highly competitive market (which you can find out when using that keyword research tool mentioned earlier), it’s even more important to have the room in your budget to get an accurate idea of what it’s going to take to rank in the positions that will be the most productive for you. Over time, you’ll work on optimizing your ad text and keywords, which will help your click-through-rate and click price.
There are ways to work with a lower budget, but you really need to commit a decent amount of budget to really see a campaign succeed. It’s better to give yourself more room budget-wise in first couple of months of your account to get an accurate picture of potential traffic. Lock down your budget too much and you’ll never get the chance to see what your account can do.
If you’re considering starting a PPC account or currently have one running that you’re not happy with, give us a call. We’re happy to help you better understand what kind of budget would beneficial for your campaigns and what kind of competition you’d be facing. Contact us today by calling 800-267-1704.