Pay Per Click Budgets

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A quick overview of setting up a pay per click budget: bidding, budgeting and ranking.

Click prices vary depending on the search phrase you are targeting. Some search phrases are only a dime, some are several dollars and some highly sought after search phrases will be over $25 per click.

Your budget would be your total estimated traffic, multiplied by your click through percentage, multiplied by your bid amount.

You can attack this media plan from a couple of different angles. If you need to have a certain amount of visits to your site, then you would simply let the budget roll until you get those visits. If you have a set budget per month, then you can set that up in the account settings and know that you won’t go over that amount.

Either way you should bid accordingly to get ranked higher until you are receiving the traffic you want. Again, your budget would depend largely on the search phrase and what your competitors are willing to bid.

Both Yahoo & Google allow you to set a daily budget. So if your campaign has $15,000 set aside per month for internet ads, then you know you can spend $500 per day. You can then divide that up evenly between Yahoo and Google, or better yet you can split it more weighted towards Google.

If your budget is $500 per day you then estimate how many clicks you are going to get by dividing that amount by the estimated traffic. Yahoo / Overture have an online tool to show you the estimated traffic for a search phrase. Of course, that is the total traffic per month for that phrase and not everyone will click on your ad. A good estimate would be 5 percent click through rate.

So long story short, if one keyword phrase has 100,000 views per month, then you can expect 5000 people to click on your ad. If you are bidding $3 per click then you have met your budget.

Of course these are all estimates and the bid, budget and views/traffic depend on the keywords you are going after. Depending on your ads placement and quality, you can have a lower or higher click through rate.

Finally, if you need more info, you can setup a Google and Yahoo account for free and use it to get estimates. They only require a credit card to start running the ads or to finalize your account. For Google you can completely register as billing is after you are done with your setup. For Yahoo it is just the last screen before registering. Either way, you can get all the estimates you need before then. Just put in your keyword phrases you want to target, write and ad, put in your bid (which you can raise or lower) and both will come back with estimates.

Good luck and, of course, learn more about PaperStreet PPC services.

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