How Much Does Pay Per Click (PPC) Cost?

In drawing up a budget for a Pay Per Click campaign, it’s crucial to focus both on your ROI (return on investment) percentage and on your net profit. A small scale campaign can bring home a tremendous ROI percentage but relatively minor net profits. Conversely, a relatively moderately profitable ROI can generate huge influxes of cash to your advertising budget if you do large volume business.

In other words, it’s difficult to measure your Pay Per Click costs and benefits in the abstract. Perhaps more important is figuring out how to optimize the return you get on every dollar of advertising spent. If you outlay just $4,000 to get your campaign started, you may not see a huge return, even if you create a profitable campaign.

That said, while it may be tempting to outlay tens of thousand of dollars to reach consumers via both broad keywords and niche categories, you don’t want to blow your Pay Per Click ad budget during the first week, unless it brings a good ROI, and then you need to up your budget.

Beta testing your Pay Per Click ads and measuring your results will reduce your overall costs and uncertainties. Be mindful that different industries and business types should expect different ROIs. If you sell super low priced widgets on both national and local levels, and you already have well-established ecommerce and brick-and-mortar outlets, you may be able to link up other various ad campaigns with your Pay Per Click campaign to reduce your overall Pay Per Click costs or at least defray them.

In addition, when budgeting, think about tax consequences. If you can write off all or part of your advertising initiative come tax time, or if your net profits can be shielded from the government, your profit calculation will change.

You should also consider your overarching ad costs. Even if a Pay Per Click campaign turns a nifty profit, you may want to consider your tactics if other research suggests that adding a Pay For Calls campaign (for instance) might deliver additional ROI. Costs, ROI percentages, and profits can all be construed relatively, until you define what constitutes a success for your company, it may be challenging to determine what cost is optimal for you at this time.

Superpages Pay Per Click

Get new customers at the click of a mouse! If you use your Web site to generate sales, then Superpages.com Pay Per Click advertising is the solution for you. Pay Per Click spotlights your business to potential customers, and turns browsers into buyers. And the best part is you only pay for the customers who actually visit your business Web site.

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