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What Factors Are Considered When Determining an AdWords Budget?

Google AdWords, also known as Pay-Per-Click or PPC, is one of the most important advertising tools in today’s online marketing arsenal. AdWords allows for a sustained advertising campaign for your practice across a variety of digital platforms – including desktop computers, smartphones, and tablets – and it can be customized for a variety of goals. This revolutionary marketing technique can help drive targeted visitors to your website, and the results of specific campaigns can be monitored to ensure they are working effectively. Here at Rosemont Media, we offer comprehensive AdWords strategies along with the many other content marketing and SEO techniques we make available to our clients. Since you can set a fixed budget that dictates how much you will spend on an AdWords campaign, you may be wondering what you should think about when trying to determine the amount.

Setting a recommended budget for AdWords campaigns is based on a number of factors, many of them unique to your specific location, the type of practice you operate, the services you provide, the size of your market, how aggressive you want to be and, conversely, how much your competition is willing to pay for these same terms. AdWords is primarily run on a cost-per-click (CPC) basis. Your max CPC is the most that you are willing to pay-per-click for a given keyword. Once you have set these Max CPC parameters for each of your keywords, your budget will go toward paying a certain amount for each and every time a viewer clicks on your advertisement. If you already have an active AdWords campaign, re-evaluating your budget will consist of: looking at recent performance, evaluation of your current budget, your list of targeted keywords, search impression share, bid modifications, competitive analysis, and a plethora of other factors.

John Forrest, Rosemont Media’s Director of Local Search, says it’s often best to begin at a spending level that the client is comfortable with. “Our philosophy here is to attempt to make each campaign as profitable as possible for each client – no matter what their given monthly budget is. Before I ask a client for more AdWords budget, I want to ensure that our stats reflect this need so that I have a basis for my recommendation. Three important AdWords metrics to be cognizant of are: conversions (the number of phone calls and emails received), search impression share (how often our ads show vs. how often they were eligible to show), and CPC. No matter how convoluted and complex AdWords progressively becomes, the priority is to always ensure that our campaigns are profitable for our clients.”

Rosemont Media is proud to be a Google Premier Partner. We have a comprehensive understanding of how to best navigate the AdWords process and formulate effective advertising strategies for practices both large and small. A member of our team will be happy to talk with you about setting up an AdWords campaign or an evaluation of your current campaign to see if it may be necessary to establish new budget priorities. If you would like more information, don’t hesitate to contact Rosemont Media.

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