Do you ever wonder how best to budget for your online campaign? Many professionals struggle with this. How much should a conversion cost? Am I spending too much? Too little? Take a step back and review your plan.
Identify Specific Goals
First, identify the campaign goals. Be specific. Do you want them to fill out a form to join an email list? Do you have an e-commerce site that is up and ready for purchases? Or, are you simply positioning for branding and awareness?
Assign Value to a Call to Action
Next, determine what’s the value of a successfully completed call to action, whether it be a click, an email list sign up, or a phone call. There are so many options and values to be placed on a call to action result, this is where it can get difficult. Start by trying to identify how many clicks and views it takes for you to make a sale via the internet. Then, assign a value to it so you can start to distinguish it in your budget. If Google Analytics is installed there is data available for you to use to help you calculate this. So, for example, take the dollar value you put on an email signup or some other promotion. By doing this you have created a simple way to see the worth of a promotion.
Analytics can Jump Start
The Analytics data will give you an idea of successful keywords and referring websites. It will jump start your budgeting process and set the ground work when calculating the ROI of a campaign. If you already rank high for a certain keyword should you budget to continue to do this? My answered would be no. Your money would be better spent finding keywords and phrases you want to be found on but currently are not.
Going by “gut” is a Good Place to Start
I do not like the “swag” or “gut” method to budgeting. But I do believe that might be good place to start, for a test. But beware of possible pitfalls. Don’t hang your hat on keywords or phrases without data. You may be accurate at guessing which one(s) are lucrative but many times there may be one you’re not realizing that might be an even better place to allocate funds. Guesstimating might help you to get started, but you will shortly want to check facts rather than loading a list of keywords without organizing them and hoping for the best.
Rely on Collected Data
For online search advertising, budgeting is based on the cost per click, bounce rate, and next page. Using your campaign dashboard, with the collected the data you can start to see the cost of the relevant keywords, websites and remarketing will cost. By looking at conversions or completed goals you can then identify what is the most effective and also areas to improve. There definitely is a science to it all. But in order to discover it, you will need to start someplace by estimating and refining.
Driving Point: For online campaign budgets, calculate the cost of a conversion then work backwards.