Should You Increase Your PPC Budget?

Writing by Pay Per Click Journal on Tuesday, January 6, 2009 Leave a comment

There may become a time in the life of your pay per click campaign that you want to increase your budget for advertising. Should you?

While there is no simple answer to this question, there are some things that you should think about before you decide to increase your pay per click budget.

Here are some things that you should consider:

  • What is your historic trending? Has your PPC CTR and conversion rates gone up or down, seen peaks and valleys, or remained steady? Generally, you only want to increase your budget if you think there is a reasonable chance that it will increase your ROI.
  • Do you have a peak season? That is generally the optimal time to increase your budget. Conversely, you should lower your budget when the slow seasons starts.
  • The economy is in recession. Most business owners make the mistake of reducing their advertising when the economy goes south. That may be the worst time to cut your budget. You may not necessarily increase your budget at that time, but your competitors have likely stopped advertising then so why not capitalize on the decreased competition?
  • When your historic data shows signs that you have a niche within your niche where you can capitalize and you have no budget set aside for it. You might actually consider spinning off this sub-niche into its own PPC campaign and establishing a budget for it.
  • When you have a hot promotion going on and you want to drive increased traffic to your new special or promotion.

Increasing your pay per click advertising budget is a big step. Generally, you only want to do it when your historic data gives you good reasons to think you could realize a payoff from the increase. If you are just doing it because you think it will make you more money, don’t count on it. Trends really do tell the story.

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Pay Per Click Journal is Blog that discusses all aspects of Pay Per Click Advertising (PPC) and Search Engine Advertising for the new and advanced reader.