How Much Should You Spend On A Pay-Per-Click Advertising Campaign?

Running a business is really hard work, and even for those of you out there who have multiple businesses, the work does not necessarily get easier. Not only are you dealing with the day-to-day operations of what your industry is, but you are also navigating the 21st century in terms of spreading the word about your business, and this will undoubtedly include a pay-per-click advertising campaign.

As companies have begun to understand what it means to be relevant players in the online advertising game, being able to know how best to drive traffic to their website is critical for success. Moreover, not only is the initial push of traffic vital, but there is a need to understand what it takes to maintain a static ad campaign. In today’s world of online advertising and marketing, clicks are what it is all about. There’s just one problem – how exactly does a business’s advertising budget factor into funding a successful pay-per-click advertising campaign?

The truth is that all businesses struggle with making sure their advertising budget is efficiently spent and that there is a worthwhile return on investment. Thus, the question comes up about the amount of money that should be spent when it comes to a pay-per-click advertising campaign.

Here are a few things to consider:

Determination of Goals – What’s it all about for your business? Numbers of leads or sales per ad dollars? Knowing what you want & what means the most to your business is the best guide.

Find Out Where You Can Save Money – Advertising experts note that only about 25% of small businesses are active in their PPC accounts. Getting your hands a little dirty may actually save you money because you’re taking the time to see where issues have arisen & trying to nip them in the bud before they become problems.

Factor in Room for Errors or Changes – Advertising budgets need some room to maneuver so that changes can be made when necessary. A dynamic advertising plan is always vital for any business because standing still without financial wiggle room means you get left behind.

Have An Actual Budget From Which to Work – Perhaps the most important part of any pay-per-click advertising campaign, businesses need to have a budget from the beginning. This lets you know how much you can spend & allocate funds for changes that may come up.

As with most things pertaining to advertising and marketing, determining a specific dollar amount to be spend on your business’s per-per-click advertising campaign is not an exact science. Full disclosure: there are a number of websites that provide their versions of equations to give you a ballpark figure, but again, it’s all an estimation. In the end, knowing what best works for your company’s advertising dollars is teaming up with a killer advertising agency that can get a handle on your business, understand your needs, and help you put together a plan to make every advertising dollar work for you.

Description About Advertising

Advertising is an audio or visual form of marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. Sponsors of advertising are often businesses wishing to promote their products or services. Advertising is differentiated from public relations in that an advertiser usually pays for and has control over the message. It differs from personal selling in that the message is non-personal, i.e., not directed to a particular individual. Advertising is communicated through various mass media, including old media such as newspapers, magazines, television, radio, outdoor advertising or direct mail; and new media such as search results, blogs, social media, websites or text messages. The actual presentation of the message in a medium is referred to as an advertisement or “ad” for short.

Commercial ads often seek to generate increased consumption of their products or services through “branding”, which associates a product name or image with certain qualities in the minds of consumers. On the other hand, ads that intend to elicit an immediate sale are known as direct-response advertising. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non-profit organizations may use free modes of persuasion, such as a public service announcement. Advertising may also be used to reassure employees or shareholders that a company is viable or successful.

Modern advertising originated with the techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, considered the founder of modern, “Madison Avenue” advertising.

In 2015 advertisers worldwide spent an estimated US$529.43 billion on advertising. Advertising’s projected distribution for 2017 was 40.4% on TV, 33.3% on digital, 9% on newspapers, 6.9% on magazines, 5.8% on outdoor and 4.3% on radio. Internationally, the largest (“big four”) advertising-agency groups are Interpublic, Omnicom, Publicis, and WPP.

In Latin, adventure means “to turn towards”.

Egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and found advertising on papyrus was common in ancient Greece and ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC.

In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry (11th to 7th centuries BC) of bamboo flutes played to sell confectionery. Advertisement usually takes in the form of calligraphic signboards and inked papers. A copper printing plate dated back to the Song dynasty used to print posters in the form of a square sheet of paper with a rabbit logo with “Jinan Liu’s Fine Needle Shop” and “We buy high-quality steel rods and make fine-quality needles, to be ready for use at home in no time” written above and below is considered the world’s earliest identified printed advertising medium.

In Europe, as the towns and cities of the Middle Ages began to grow, and the general population was unable to read, instead of signs that read “cobbler”, “miller”, “tailor”, or “blacksmith”, images associated with their trade would be used such as a boot, a suit, a hat, a clock, a diamond, a horseshoe, a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts. The first compilation of such advertisements was gathered in “Les Crieries de Paris”, a thirteenth-century poem by Guillaume de la Villeneuve.

How To Know When You Need A New Advertising Agency

Even though many of us don’t own or run our own businesses, we know that times can be pretty rough in the business world. In order to stand out and compete, businesses will take on the services of an advertising agency so that while the business focuses on having a solid product or service to offer, the advertising agency can focus on making the business a consumer juggernaut.

In practice, this sounds great. In fact, the argument can be made that this is the way to go for businesses looking to stay ahead of the game versus their competition. Far more often than you’d think, businesses will try to take on advertising internally, figuring that no one knows their business better than they do. The problem with this is that at some point, you’re too close and drawing conclusions on advertising strategy is being done based on emotion rather than analysis & assessment. In the same way you can’t really tickle yourself, it’s hard to handle your own advertising.

But, sometimes the job isn’t getting the job done. What was once an exciting partnership isn’t quite as productive, and you wonder what the future holds. Moreover, you hope you see the signs of decline before it starts affecting your bottom line.

How can you tell it’s time for a new advertising agency? Well, that be harder than you think. Here are a few tell-tale signs it’s time to part ways:

You Encounter Nothing But “Yes” Men – A business owner may find the idea of uniform agreement pretty nice simply because it makes you feel as though you’ve got all of the answers. The problem is that an advertising agency needs to be able to challenge their client to think differently.

You Lose Track of the Numbers – How advertising dollars are spent weekly, monthly, quarterly, or yearly helps a business know where they stand financially, where they need to re-group, and how best to move forward. Transparency is key, but if an advertising agency isn’t keeping communication about these numbers open, the business who hired them is flying blind.

Your Advertising Agency is Missing in Action – When things are new & exciting, the advertising agency you hired for your business is maintaining regularly scheduled communication, providing a breakdown of all that is happening with your account. Over time, though, the communication becomes less frequent, and the business starts feeling left out and less important. Tension can fester, making subsequent meetings with the agency feel forced and uncomfortable. Both sides may dread appointments. It’s time for a change.

The one thing businesses need to keep in mind when working with an advertising agency is that in order for plans and strategies to play out, it takes time. Each side plays their part in achieving goals & milestones along the way. However, keep in mind that an advertising agency works for your business, and if they aren’t cutting it anymore, you have to find an agency that will.