When it comes to digital marketing, Pay-Per-Click (PPC) advertising is one of the most effective ways to reach your target audience quickly.
But one of the biggest questions marketers face is: How much should I spend and where?
A smart digital marketing budget isn’t just about picking a number; it’s about making sure every dollar works toward your goals. In this article, I’ll walk you through the six essential steps to allocate your PPC budget like a pro.
1. Start with Clear Goals
Before you even open Google Ads or Facebook Ads Manager, ask yourself:
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What do I want to achieve? (Brand awareness, website traffic, email sign-ups, sales, bookings)
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Are you able to sustain a long-term term evergreen campaign?
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Do you have a communication strategy adapted for every channel?
2. Know Your Audience & Channels
Depending on the industry you are part of, identify where your audience spends their time and where they’re most likely to convert.
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Google Search: High-intent traffic but often higher CPC.
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Display & YouTube Ads: Great for awareness but lower intent
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Social Media: Facebook, Instagram, LinkedIn, or TikTok might offer cheaper clicks and better targeting for certain niches.
3. Research Costs & Competition
Use tools like Google Keyword Planner for Google:
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Find the average cost-per-click (CPC) for your target keywords.
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Check how competitive those keywords are.
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Estimate the clicks and conversions you can realistically afford.
In Meta, you can use A/B testing to get valuable insights about your audience
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You will have a clear picture of what combination of image, text, audience, or placement is better for your audience. This happens by showing each version of your ad to a segment from your audience, while ensuring nobody sees both.
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You can use this testing tool when you’re trying to measure changes to your advertising or quickly compare two strategies.
4. Prioritize & Split Your Budget
Not all campaigns should get the same budget share.
Here’s a simple rule of thumb:
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60-70% → Prospecting new audiences.
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10-20% → Testing new keywords, ads, or audiences.
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10-20% → Remarketing to people who already know you.
5. Set Realistic Daily Budgets & Bids
Use your research to decide:
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Daily spend = CPC × clicks per day you want.
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Monthly spend = Daily spend × days per month.
Example:
If your average CPC is $2, and you want 50 clicks per day:
$2 × 50 = $100 daily budget
$100 × 30 = $3,000 monthly budget
Start with manual bidding to learn what works, then test automated bidding once you have enough data.
6. Monitor & Optimize Continuously
PPC is never a “set it and forget it” game.
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Check your campaigns at least weekly.
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Look for top-performing ads, keywords, or audiences.
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Reallocate budget to the best performers and pause or tweak the poor ones.
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Use A/B testing to keep improving.
These tips are just a scratch of the surface steps you can follow on your own, but if you want to have these tasks managed by a pro team, do not hesitate to contact us.