How much should I spend on PPC?

Would you like to sell more kitchen cabinets and countertops? If the answer is yes, then you should consider implementing a PPC marketing strategy. 

If you are a retailer for kitchen remodeling products, pay-per-click (PPC) marketing will provide you with a competitive advantage.

How much should I spend on PPC?

What is PPC marketing?

Pay Per Click marketing represents a great marketing technique that will help your company gain greater market visibility as well as greater market share. PPC represents an advertising model, which is a part of an inbound advertising and marketing technique. PPC (pay-per-click) marketing functions like this: an advertiser bids on certain keywords that prospective customers are looking for through the help of search engines, for the preference of displaying a relevant ad to those users. Hopefully, if all the other aspects of marketing strategies are in accordance, the ad will attract possible new customers to the marketer’s website.

Pay Per Click promotions are paid advertisements that appear above the organic search results page. If a user clicks on your advertisement, you will then pay for that click, consequently, that is why it’s called pay-per-click advertising and marketing. Small businesses especially love this attribute due to the fact that it makes Pay Per Click affordable. Actually, Google asserts that organizations make $2 for every $1 they spend on PPC.

From what we have seen in kitchen and bath industry on average in order to find a converting lead it can take anywhere from $70 up to $120 depending on the time of the year. While the kitchen projects are expensive and the profit margin is much higher, investing in Google Ads for your local kitchen and bath showroom is a great way to get more customers and grow your business.

What are the benefits of PPC marketing?

If you use Pay Per Click marketing technique, you can stay rest assured the only people seeing your ads will be the ones out there who are looking for your products specifically. For example, if you make use of paid search advertisements, you can set your ad to only reveal when a homeowner searches for questions similar to “kitchen countertops near me.”

One of the best benefits Pay Per Click ads have is that they can quickly be switched on and off as well as are easily adjusted. Subsequently, you can partially control ROI and also increase it. Everything on the internet can be monitored, and Pay Per Click advertisements represent one of the most trackable techniques of the digital advertising world. Organizations that track and monitor ROI are 72% more likely to have an effective advertising and marketing campaign, consequently, you can expect a rise in profits.

Whatsmore, greater than 45 percent of the clicks on a page goes to the top three pay-per-click ads displayed above organic results, which is why PPC typically works as a great ally to Search Engine Optimization strategies.

Furthermore, another reason you should use PPC marketing is due to the fact that the people who click PPC ads are 50 percent more probable to acquire your product than an organic visitor. 

How should you budget your PPC campaigns?

If you have an interest in running a Pay Per Click campaign as part of your advertising and marketing strategies, you should first see if running PPC for your organization will payout. If you invest a small amount of money you might not even reach the period when your ads finally become profitable. Whereas if you have a big budget, you’ll likely end up investing in various other channels to drive sales, as there are just not sufficient relevant searches daily to fulfill your desired budget plan.

How does Google determine your ad placement?

Along with your max bid, Google considers your top quality score (QS) when identifying advertisement positioning. Basically, your top quality rating is a combination of your ad’s applicability to the keyword that caused it, click-through price, and the quality of the landing web page site potential customer sees after clicking your advertisement.

Simply put, the Ad Ranking formula = (your max expense per click (CPC) proposal) x (your ad’s QS). For instance, if your maximum bid for a keyword is $5, and you have an ad QS of 8, your Advertisement Rank is 40. Furthermore, in order to figure out the cost you pay per click, Google makes use of a simple formula: (Ad Rank of the advertisement below yours)/ (Your QS) + $0.01.

How much should you expect to pay for PPC?

Generally, companies should anticipate paying $1-$2 per click to market on the Google search network. On average small businesses, as well as medium-sized organizations, spend monthly between $5,000 and also $9,000 on PPC depending of the time throughout the year. For kitchen and bath businesses sales usually drop during winter as customers are not renovating kitchens during this period so it is a great time to increase your budget at this time to have constant sales. This equates to approximately $60,000 to $108,000 annually.

When it comes to determining your budget, you should first do your keyword research. If you have identified moderately priced key phrases for your kitchen cabinet e.g. together with a great number of potential customers searching for those keywords each month. Secondly, you should take a look at your products, customers, as well as website analytics, in order to identify your conversion rates or the cost at which potential customers are developing into actual clients.  The logic is pretty simple – the higher the rate of purchase along with higher ticket cost on an individual sale means a greater budget to spend on your PPC campaign.

Finally, once you have actually identified that your campaign will be profitable, you can start customizing the most optimal budget. You should invest as much as possible, as long as you’re remaining profitable. If your campaigns are driving much more money than they’re setting you back, you should definitely continue what you are doing.

How to successfully manage your PPC campaign?

If everything you read so far sounds a little bit confusing and unclear, do not worry! Here, at KitchenDev we have our team of PPC specialists, with more than 10 years of experience in kitchen product marketing. If you would like your PPC campaign to be more than just profitable let us take care of your business and watch it grow together!

With rich experience and knowing which keywords can bring you leads based on our previous testing and data we are ready to talk about your project.

Contact us today and start enjoying the benefits of our team of experts with PPC advertising! Our knowledge of the latest best practices will provide you with a successful and profitable PPC campaign, which is something that we can guarantee to you!


Try KitchenDEV

Contact us to get a demo account to play with the software