If you’ve been advertising off line for some time then you are likely familiar with budgeting expenses. There are several strategies for setting advertising budgets. Which one you choose depends a lot on your business goals and your comfortability.
One way to budget for PPC is to take a percentage of your off line marketing budget and dedicate it to pay-per-click marketing. But how do you determine that percentage? You could just pick a number out of thin air, but I’d suggest that you take a number equal to an aggregate of marketing channels that are not working for you or that have not produced any positive results in a while.
Another way to budget for PPC, and this works well for fairly new businesses, is to take a percentage of your revenues and devote that to pay-per-click. Many companies use a 20% benchmark and adjust for their costs. You might be more comfortable with 15%. Pick a number and go with it.
Pay per click marketing should be seen as any other marketing channel. If it works for you, keep doing it. If it isn’t working, try to figure out why and change it. But do budget it.