Determining budget for PPC is very subjective. It does not depend upon the industry, to your competitors’ budgets, or to other such factors. It totally depends upon how aggressively you want to market your products/services.
Just bidding high and ensuring top rankings is by no means a way to measure success of your PPC Campaign. The one factor that determines the success of your ppc campaign is your return on investment. If you are able to garner profits from your ppc campain, then by all means it is a success.
There are no specific figures for a PPC campaign budget. It totally depends upon how much you want to spend. However, there are few basic variables that need to be considered when budgeting for a PPC account-
1.  Cost per conversion: It is very helpful if you have ascertained a value for cost per conversion. This decides the upper limit of your bids.
2. Number of conversions: An estimate of the number of conversions that you expect to achieve (per month).

The ideal way to determine your budget is to run a pilot. Decide a budget, run a campaign for a month. Analyze the cost per conversions, average cpc bid for keywords etc. Depending upon this analysis, scale the campaign.

Tags: Google Adwords, PPC

This entry was posted on Thursday, September 25th, 2008 at 7:21 pm and is filed under Pay Per Click. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.