The cost of a typical PPC (Pay Per Click) campaign is something that most businesses neglect to consider when planning their marketing budgets. The primary purpose of a PPC campaign is to drive traffic to your website and increase your conversions, so the costs associated with such a campaign can vary. Having said that, there are some definite costs that you need to budget for.
Set A Goal For The Campaign
The very first thing you need to do before you start executing a PPC campaign is to set a goal for yourself. Ideally, you want to set a goal such as getting at least 100 leads by the end of the month. Setting a goal for a PPC campaign has several advantages. First, you will have something tangible to show for your efforts. Second, you can track your success regularly (at least in terms of leads). Third, you can determine how much you need to spend on the platform to achieve your goal.
Cost Of Targeted (Demographic) Ads
One of the main differences between a PPC campaign and a regular Google AdWords campaign is that a PPC campaign targets a particular demographic. Usually, these are either very specific interests (such as ‘admit card printing’ or ‘London attractions’) or demographic groups (such as ‘women between 25 and 34′ or ‘Singles between the ages of 18 and 24′). When you run a PPC campaign, you will see ads for your chosen target demographic, and those are the only ads that you will see (unless you specifically ask to see more relevant ads).
The major cost associated with a PPC campaign is the cost of the ads themselves. For a targeted ad to be successful, it needs to be highly relevant to your audience. The cost of a targeted ad is higher than that of a generic ad, simply because they are more effective. However, this comes with a catch – you need to ensure that you have the right demographics for your ad.
Cost Of A Lead Magnet
A lead magnet is something special that you give away for free in exchange for an email address. Typically, lead magnets are in the form of a report, a guide, or an ebook. The idea behind a lead magnet is to entice a potential customer to take action by offering them something of value while also gaining their email address.
The major cost associated with a lead magnet is in the form of your time. Creating a lead magnet takes time and requires specific skills that most businesses lack. Fortunately, there are digital marketing tools that can automate much of this (i.e. the process of creating a lead magnet), which means that you can focus on other parts of your business.
Cost Of Conversion Tracking
If you are someone who is new to digital marketing, you may not know what conversion tracking is. Essentially, conversion tracking is the process of measuring the actions that a user takes after they are brought to your site by a PPC or other organic means of traffic. The costs associated with conversion tracking include the set-up costs for the tracking pixel and the data analysis costs associated with tracking multiple options (such as a purchase or a registration).
Although the costs associated with a conversion pixel are low, the very fact that you need to track multiple options makes it a costly affair. Fortunately, there are automated tools that can help you track all of these measures automatically, which makes it much easier to keep track of the costs associated with conversion tracking.
Cost Of Email Marketing
Just because a user comes to your website through a PPC campaign or an organic search result doesn’t mean that they will instantly become a customer. To get them to convert, you will need to send them some sort of digital marketing material via email. The costs associated with email marketing include the distribution costs for the email (in addition to the actual cost of the email itself).
Sometimes, the cheapest option available may be the best one. Even though your initial investment in PPC may seem low, it may not be the most efficient route to take. Sometimes, it’s better to invest in a traditional advertising method, such as yellow pages or newspaper ads. The key is to find the right place for your money. What are your margins like? Where do you see your company in the next 5 years? These questions should help you find the best place for your money.