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Budgeting For PPC Advertising

“What budget should we have?” The most daunting question that clients can ask. Some clients come and ask us what can we do with their budget. It’s straight forward, we know their budget and we create a media plan based on that. A lot of times when we get new projects and clients we get asked about what budget should we have. What we like to ask first is ‘What would you like to achieve with this campaign?’ It’s a very interesting question because the majority will tell you increase my sales by 50%. Okay, that’s fair enough, we can do that. In order to increase sales we need to consider a few things first: To sell anything brands have brand equity. The conversion will depend on how well known the brand is. Before selling anything we need users (people) to trust our brand. I can sell IQD Shoes for example but if nobody knows IQD Shoes then it will be harder for me to sell, right? So if I invest €10,000 to sell shoes my conversion will be low. Now if Nike invests €10,000 to sell running shoes their conversion will be much more higher because it makes sense to buy shoes from Nike and we have a particular feeling towards Nike.

The first question you need to ask yourself is what what is my goal?

  • Increase sales by X%?
  • Increase social media influence?
  • Increase my email list subscription?
  • Increase loyalty?
  • Increase trust?
  • Brand Awareness?

Let’s say you want to increase sales. You need to go deep and think by how much would you like to increase your sales? You need to know the exact number. I want to make €500,000 in one month. In order to achieve this goal you need to invest in advertising. If you are using Google AdWords you have to re-search how much your potential keywords will cost and how much the competitors are paying. If you are going to use social advertising (Facebook, Twitter, Instagram) you need to think how you will create the desire for people to buy and ask who is your target audience.

We had a meeting with a client last week, their goal was to make €500,000 within 12 months. Their budget didn’t  fit their ambition. It’s not a good idea to say that you will invest €500 to get €500,000.  So based on your goals you can allocate the appropriate budget.

The website or landing page matters a lot. You have to look at it and ask yourself; is it well designed? Is content being published on a regular basis? Is it mobile friendly? How does your landing page look? What is the copy on your website? Do you plan on doing A/B testing on your landing pages? A well designed and established website can make your job infinitely easier.

The number one factor to success or failure of PPC ads is the relevancy of the audience being targeted. The more relevant the advert the better response you will receive.

I thought you might find this report on where brands will invest interesting;


End of the day at IQD we suggest to clients to always think of their goals and to adjust their budget accordingly. For some clients with certain budget we suggest to create an influencers campaign only, for some to go very targeted with Facebook Dark Posts ads. Test everything and see what works. If you have any questions or would like more information you can always contact us anytime or just email me on an at iqd dot agency.

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