Defining a budget for your CPC search engine campaign

Cost per click depends on the competition of the market. For some easy niches, you can spend as low as 15 to 20 cents per click, and for others you can easily spend 1 or 2 euros per click or even more. Let’s take an imaginary niche where 50 cents is the average cost of a click with Google.

Next is to see how many clicks you want a day for your business. If you want one new client everyday with Google, and if you think about a conversion rate of 2%, hypothetically, you will need 50 clicks a day for the same. 50 clicks, @ 50 cents a day, will cost you 25 euros. In this example, that will mean that you get every new clients for 25 euros.

We need to understand that once someone becomes your client, and provided you have a good domain name and a moderately good natural search engine campaign, you will not need another 25 euros to make the same client to visit your website again. The client will probably bookmark or remember your site, or find it elsewhere by some other link.

Thus, by this hypothetical calculation you gain around 30 new clients a month, for a budget of around 25 x 30 = 750 euros a month. Having said that, fixing a budget in Google is tricky in the sense that we don’t define the budget really in Google, we just put a maximum cap. Thus often you won’t use all your limit, you may use say 600 euros a month only.

It is thus advised that to keep the bar a bit higher, like if you have a monthly budget of 750 euros, let’s keep it at 850 or 900 euros for the beginning, and let’s see how it goes. After the result of the first three months, we can make an average, and redefine the monthly budget.