How Much Does PPC Cost?

Pay-per-click (PPC) has become one of the most effective marketing tools for online marketing today. It is currently one of the fastest ways to generate leads online. The only issue with it for many campaign managers is how much it costs.

Cost or investment?
PPC is simple and effective when done right. One of the greatest things about PPC is that you have complete control over the amount of money you spend on it. If you do it right, it will be one of the best investments you’ve ever made. If not, it will cost you.

The actual cost of each click will depend on the relative competitiveness of the chosen keyword. If you’re running your campaign on social media, the cost per click will depend on the competitiveness for the desired audience.

If you choose a non-competitive keyword, the cost per click will be low. You could pay a few cents for each click. However, the cost is much higher for competitive words. There are keywords whose cost per click runs over $25 per click.

It is therefore important to remember the whole motivation behind PPC. You run a PPC campaign to generate leads. You can only encourage a prospective customer to click on your online ad. You can’t however, influence them to purchase or convert on your website.

Your budget
Advertisers set budgets that are meant to guide their campaigns. However, many people hold to the misconception that the cost per click for each keyword is set at a predetermined price. The world of PPC keywords however is more dynamic than that. The real-time market bids determine the cost per click for keywords. This means the competitiveness of keywords changes frequently.

To determine your costs, you will have to start by choosing your keyword e.g. dentist. If this keyword is competitive, it may cost $20 per click. You can then determine how much you can afford in a month e.g. 100 clicks per month. That will mean you’ll spend $2000 on the specific keyword for that month.

It is important to factor in other expenses. This may include the cost of the management of your campaign if you’ve hired a third party. It may also include the cost of tracking the progress of your campaign if you opt for a paid service.

Well managed PPC campaigns generally have a high return on investment (ROI). PPC is therefore worth investing in.


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