Ad BudgetsLord Lever, of Lever Bros soap fame, said “Half my advertising works but I do not know which half ” The net has changed all this, it is accountable. Now every euro should produce for you. Net advertising can be either PPC (pay per click) or SEO ( Search Engine Optimisation) Let us examine PPC first: To arrive at your PPC advertising budget first quantify the following:
This gives an ‘initial ’ estimate for your PPC budget = (RCPS) X (GP) X (NRS) Now before you spend all this budget, you need to find out if your RCPS can actually be achieved! PPC campaigns deliver identifiable traffic to your website at known costs per click. You then need to find the average number of clicks required to make a sale. So begin a simple test market, generate the leads, analyse the sales, add admin costs & calculate your actual cost per sale (ACPS). You now know which half of your advertising works. Setting your Search Engine Optimisation(SEO) budget is more complex but uses a similar approach. Contact us for a presentation |