7 Steps to Determining Your Estimated PPC Budget

By Avelyn Austin | Sep 24, 2010
More Articles by Avelyn


Many companies contact Search Mojo because they know that they either want or need to do pay-per-click (PPC) advertising. The thing they don’t always know is how much money they need to budget to be competitive within the space. Because it’s October (well almost) and most companies are sitting down to plan their 2011 PPC budgets I figure now is the best time to give a quick step by step guide to determining an estimated PPC budget.

7 Steps to Estimating Your Annual PPC Budget

1.  Analyze the site

This step is more for agencies who are working with a company for the first time and are not familiar with the site.  Take note of the information on the site including messaging, products, and services.

2.  Open the Google Keyword Tool.

The Google Keyword Tool can be one of your best friends when it come to determining the keyword phrases that you should be advertising on.  Click Here to Open the Google Keyword Tool.

3.  Use the website box on the Keyword Tool page.

Enter in the URL of the site into the website box on the keyword tool page to determine the initial keywords.  Based on the list of suggested keyword phrases that the tool provides, select the check boxes next to the keywords that are relevant to the site’s content and that would be appropriate for the company to advertise on.  Then download those chosen keywords and place them into an Excel spreadsheet.

4.  Use the keyword or phrase box on the Keyword Tool page.

After determining the initial list, plug those keywords into the keyword or phrase box on the keyword tool page to determine additional phrases (including plurals, synonyms, etc.) that would be appropriate for the company to advertise on.  Again download the selected keyword phrases and add them to your Excel spreadsheet of keywords.

5.  Create the 3 match types for all keyword phrases on your compiled list.

Once you’re satisfied with the list of keyword phrases you’ve compiled, it’s time to get the estimated traffic numbers.  But before you do that, I recommend wrapping your keywords to create all 3 keyword match types including broad, phrase and exact match.  A handy tool that I recommend is Mike’s Marketing Tools Keyword Wrapper.  If you need to, copy paste the keyword list that includes all 3 match types into the Excel spreadsheet.

6.  Use the Google Traffic Estimator.

Now that step 5 is complete you are officially ready to use the Google Traffic Estimator.  Copy paste the keyword list that includes all 3 match types into the Word or Phrase box on the traffic estimator page.  Use the Advanced Options to determine traffic estimates for areas other than the United States.  When you’ve selected the desired areas for advertising, click the Estimate button.  Download the results and paste it into the Excel spreadsheet.

7.  Determine daily, monthly, and annual estimated budgets.

While the downloaded data will tell you the estimated daily cost of the keywords you’ve chosen, it does not tell you the estimated monthly or annual cost.  Don’t worry though, it’s an easy equation.  Simply sum the estimated daily cost of all the keywords and multiple by 30 (the average number of days in a month) to determine the estimated monthly cost of advertising on those keywords.  The estimated annual cost may then be determined by multiplying the estimated monthly cost by 12 (the number of months in a year).  TA-DA you’ve now determined your estimated annual PPC budget.

The absolute final step, however, is setting your PPC budget.  While this is a guideline to determining an estimated PPC budget, it is not 100% dead on. Based on the breadth of keywords that a company wants to advertise on, the estimate may be too much or too little. Nonetheless, this does give something to start with.

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