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Budget of a campaign

Discussion in 'Google AdWords' started by alvin1972, Oct 5, 2011.

  1. #1
    When setting up the campaign, usually what is the budget that you are expected on a daily basis? Any formula? Please help if you know how to calculate this. Thanks
    SEMrush
     
    alvin1972, Oct 5, 2011 IP
    SEMrush
  2. Oskar28

    Oskar28 Active Member

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    #2
    Hello,

    May I ask what campaign are you referring to?
    Is it a mere PPC campaign or else?
     
    Oskar28, Oct 5, 2011 IP
  3. WhatNow292

    WhatNow292 Member

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    #3
    its depend on your Budget
     
    WhatNow292, Oct 6, 2011 IP
  4. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #4
    Yes there is a formula.

    Take the number of searches for your keywords. Multiply by the expected click rate of your ads. That gives you the number of expected clicks. Multiply by the expected CPC. That's your budget if you want to target 100% of the searches. Add 20% to cover overages (you may get a higher CTR or your CPC may be higher), but since you're new at this, probably not necessary as you'll likely mis-estimate those numbers.

    Don't know your expected click rate? This depends on your bid and therefore how high your ads will show. Running an initial test will tell you that as well as your ad quality and give you an idea of your CPC. Or you could start with a 1% CTR, seems like a nice round number, and the estimated first page bid of the keyword tool.

    Budget scares you after making those calculations? Higher than you want? Well, how much of a budget are you comfortable with? Use that. But remember, you won't maximize exposure thus leaving potential sales on the table.
     
    Lucid Web Marketing, Oct 6, 2011 IP
  5. sagarrai000

    sagarrai000 Peon

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    #5
    it is really depedns on your requirement.There is no such kind of formulas.to define Budget.so.if you need more traffic with more clicks ..optimize the CPC and more Budget you have to keep.
     
    sagarrai000, Oct 7, 2011 IP
  6. Maxroizer

    Maxroizer Member

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    #6
    When unsure about budget, consider your maximum CPA cost and the industry you are in.

    For example, if you are willing to spend about $10 for a lead (or sale) for a medical client and you want to generate up to 10 leads a day, try $100 a day at minimum bids first. Every day, raise your bids and keep on A/B testing your ads, reorganizing your campaign/groups, etc until you reach your desired 10 leads a day at $100.

    Play your cards right, you should be getting about 300-400 legit leads for only $3000 (example)
     
    Maxroizer, Oct 7, 2011 IP
  7. seoamit04

    seoamit04 Peon

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    #7
    It depends on that how much traffic you want from the campaign and competitiveness of your keywords (bid value of keywords). If you have list of high competitive keywords and wanted desired clicks then you need to set a considerable budget.
     
    seoamit04, Oct 12, 2011 IP
  8. Omid-G

    Omid-G Peon

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    #8
    It depends on the sales commission you get from the campaign. If it is like $10 per sale I'd set the daily budget on $40 for initial test then I will go ahead and optimize the campaign by tracking and split testing.

    ~ Omid
     
    Omid-G, Oct 12, 2011 IP
  9. ultimatewriters101

    ultimatewriters101 Peon

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    #9
    It depends on how much you are willing to spend on a daily basis. Even if you are going to calculate how much you should spend on a daily basis if you lack the money to pay for it or it's way below on what you can afford, then it's useless. As a starting point, it would be best to start having a budget that you can afford to loose in the process and work your way up.
     
    ultimatewriters101, Oct 13, 2011 IP