One of the most important tasks facing marketers is determining the budget for different sections of the digital strategy . If you’re not prepared, it can feel like you’re playing roulette or throwing darts at a target blindfolded with your online marketing . But the truth is that calculating the right advertising investment is much more science than art.
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How to determine your correct advertising investment in CPC – Cost per Click
How to determine CPC advertising investment
Estimating the marketing spend you need to achieve optimal results depends on knowing the right formulas and applying them with common sense . To help you get your next budget right, today I want to share with you Brett Farmiloe’s tips from Forbes for Europe Cell Phone Number List your correct CPC (Cost Per Click) advertising spend. Let’s go step by step…
Step 1: How to calculate the leads and traffic you need
Obviously, the main objective of CPC marketing investment is to achieve a business objective, usually linked to sales . Therefore, to know how much we should invest, the first thing is to calculate the traffic we need to achieve this objective.
The formulas are very simple:
To achieve €1 million in annual revenue, you need around 84 customers per month. Now, let’s assume that your sales team manages to convert 20% of leads into customers.
The numbers add up, right? But we’re still missing some important data, so let’s look at the next step.
Step 2: CPC advertising investment within your overall strategy
To determine the right ad spend on cost-per-click ads, you need to consider how they work within Buy Phone Number Library digital marketing ecosystem . Most brands use a variety of channels and strategies to drive traffic and conversions .
To keep things simple, let’s think
CPC as a way to fill in the “gaps” in your current digital marketing. That is, we’ll use paid advertising to generate the traffic we haven’t gotten through other channels like search engine optimization , email marketing , content marketing , social media , etc.
Therefore, you need to sit down
Analyze the results you are achieving with all these channels and how they contribute to your overall goals.
For example, let’s assume you achieve 75% of your revenue goal through SEO, email marketing, content marketing, and social media. This means you still have 25% left to cover.
Step 3: CPC Competitor Analysis
Just as CPC marketing investment is a part of your digital marketing ecosystem , to be competitive you also have to consider the context in which you will make your investment, that is, who your competition is and what they are doing. How much are your competitors spending on cost-per-click advertising and what keywords are they targeting?
