- October 18, 2019
- Posted by: persist
- Category: Business
Did you know that small and medium-sized businesses on average monthly spend between $9,000 and $10,000 on paid ads? PPC pricing is dynamic and continually changes but the good news is that you can control your budget — increase or decrease it as you see fit.
Wondering where to start and what to expect for the money invested in ads?
Whether you’re a PPC first-timer, you have some experience, or you simply want to know what results can you expect from an agency you hired, this post will give you the best and the most realistic answer on how to set the best budget for your ad campaigns.
What Will $1000 Get Me?
Our PPC Manager Dusan jokes when he says: ”Expect nothing, except if you do it right!”, but we all know that this isn’t entirely a joke. Doing PPC takes a lot of trial and error until you figure out how to get maximum for the amount invested. And there is no one-size-fits-all solution. Striking a balance between spend and gain is never easy. To be successful, you need to understand your industry, niche, and circumstances, carefully plan your targets and objectives, take the time to learn about your audience, refine your campaigns, and finally see what works.
We have decided to put our team’s expertise into creating a guide that will help you figure out what can you expect with $1000 spent on ads and how to achieve this.
In our experience, after working with many clients and on numerous PPC campaigns, we realized that $1000 is a minimum investment that will help optimize your ad and bring you enough conversions. This is a necessary amount regardless of the industry you’re in. The good news is that most of the platforms are customizable which means that you can control your budget and decrease or increase your spend as necessary or as you see fit.
Based on a USD $7 CPM, it is estimated that $1000 can bring you about 140.000 impressions, while based on a USD $7 CPM and 0.90% CTR, it is considered that $1000 bring about 1.300 ad clicks. In case you’re running paid ads to drive traffic to the page on your website where you want people to convert (subscribe to a newsletter or complete any other action), you can expect that $1000 can bring you about 160 — 170 conversions. This was concluded based on a USD $7 CPM, 0.90% CTR, and a 13% site conversion rate (sources: https://adespresso.com/blog/facebook-ads-cost/, https://www.wordstream.com/blog/ws/2017/02/28/facebook-advertising-benchmarks, and https://blog.wishpond.com/post/113433369138/landing-page-benchmark-report-conversion-rates).
Real-Life PPC Result Examples of What Can You Expect $1000 Will Get You
Persist Digital works with many clients, but we decided to share with you the two most illustrative examples from two different industries — kitchen & bath retail and coworking space with a coffee shop.
Aqua Kitchen and Bath Design Center is our client located in Wayne NJ. This is a kitchen cabinet and countertop showroom. On average, in 15 days, for $1000 on Facebook, our team reaches out to 35.500 people for them. Average CPM per 1.000 impressions is $14,34 and the total number of clicks is 447, while the average cost per click is 2.32$ and the average CTR is 0.62%. Total conversions for $1000: 7 submitted forms, 84 landing page views, and 1.839 video views.
See Aqua Kitchen and Bath Case Study to learn more.
Another client that we do PPC Management for is Eagle Rock Co, a cowork and coffee shop place located in Montclair, NJ. Here are the results we achieve for them by investing $1000 in PPC. With $1000 in 15 days, on average, we reach 40.200 people. Average CPM per 1000 impressions is $12.13, the total number of clicks is 319 while the average cost per click is $3.12. The average CTR is 0.39%. What this actually meant for our client? 56 people visited their place after this promotion.
See Eagle Rock Co Case Study to learn more.
There are no two same campaigns because each client is different as their businesses, industries, audience, needs, and goals differ. This is why it is crucial to carefully study and test all of these to be able to work out your costs the best and the most profitable way.
Understand Circumstances, Make Plans, and Set Goals
When you launch your ads for the first time, you can’t expect them to run at their lowest cost. You need to optimize them and continually refine audiences, placements, and targeting to make them cost-effective. To do this, you need a certain budget so you can make the first results and soon start making the best results.
Understand Your Industry and Niche
To effectively run paid ads, you need to set some time to understand your industry and niche. Different industries perform differently as their audiences differ and not all platforms are equally convenient for all industries.
Understand Ad Prices
Ad prices change. These changes and fluctuations can depend on the audience you’re targeting, the location you’re targeting, the industry, and the time of year (holidays like Christmas, for example). Also, it is expected and certain that paid ads prices will change over time.
Take Some Time to Learn About Your Audience and Refine Your Campaigns
Understanding your audience is one of the most important items on your to-do list when planning to invest in paid ads. Learn who are they, their location, what social media platforms do they use, what kind of content do they consume, what websites do they visit. Great audience targeting can boost your campaign’s performance significantly.
Plan Your Targets and Objectives
Looking to drive conversions, awareness, consideration, or full-funnel success? The cost of your ads will depend on the goals you set. If you don’t set your goals right, you can easily end up creating ad campaigns that get many clicks, website visits, and likes, but when it comes to conversions… they fail because they deliver only a few of them. When determining the budget to invest to achieve your goal, consider the fact that not all people you reach will convert. For example, from 100 people who visit your website, and if your landing page is well-designed, only 13 may convert. But you need to pay to reach 100. To determine if your website has a higher or lower conversion rate, look into website analytics.
When the campaign is over, consider retargeting to display your ads to those who exhibited interest in your business while they’re on the internet and visit other websites. Retargeting is a great way to remind those who left your website without making a purchase of your products or services.
But how much should you expect to pay for retargeting?
Just like any other paid ads campaign, the remarketing campaign cost will depend on your industry. On average, remarketing ads are slightly cheaper than PPC ads — you can pay anywhere from $0.66 to $1.23 per click. Some data shows that companies spend about 10% of their ad budgets on remarketing campaigns.
Start Small and Double Down If It Works
And that’s it — start with a small budget, test, monitor, optimize and refine, and simply double down when you’re happy with results.
How Does Persist Digital Determine PPC Pricing?
Persist Digital offers three different PPC management packages. We based the pricing of each package on the budget planned and the number of keywords used in the campaign. Persist Digital team also provides landing page design, implementation, and analysis reporting.
- Up to $2,500 monthly PPC spend
- Up to 400 keywords in campaign
- $1,000 one-time setup fee
- 2,501 to $15,000 monthly PPC spend
- Up to 2,000 keywords in campaign
- $1,750 one-time setup fee
of monthly budget
Market Leader Plan
- $15,000+ monthly PPC spend
- Up to 10,000 keywords in campaign
- $2,500 one-time setup fee
of monthly budget
Does your company spend more than $1,000 a month on paid ad campaigns? Do you receive the results you want and need?
If you think that you spend more on paid ads than you think you should, contact us. Our PPC experts will answer any questions you may have. Whether you need a PPC campaign strategy, Paid Search, Display Advertising, Shopping Google Ads, Adwords Audit, Facebook, Instagram, or LinkedIn advertising, our PPC specialists are ready to minimize your costs while achieving maximum results for your business.