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Understanding PPC Marketing Costs: What UK Businesses Need to Know
Typically, businesses spent about £100 to £10,000 on their PPC campaigns. A PPC Campaign is important for your business growth, visibility and sales. The fact that PPC has an ROI of 200% and helps businesses generate high-quality leads makes it attractive to several companies spending millions each year on their PPC campaigns.
But how much should you invest in a PPC campaign? It depends on several factors like the audience you want to reach, your website size and your business goals. Let’s dive into the complete guide on what aspects you need to know while determining your Cost of running PPC campaigns UK.
How Does PPC Marketing Work?
Pay-per-click (PPC) is a paid marketing system in which you pay to rank your ad on Google for the relevant keywords. However, there’s a slight twist. Your ad will rank on Google searches based on the amount of money you pay. This is called bidding.
You will need to provide a cost that you’re most willing to pay for your ad per click, and Google will rank your ad accordingly. For example, if your ad is running on Google searches for keywords, and another person (bidder) pays an amount slightly higher for the similar keywords, then they will rank above you for the relevant searches.
Another factor that Google uses to rank your ad is the quality of your ad. The ad quality is called quality score, which depends on how relevant your ad is, what is the quality of the page you have linked with your ad in terms of content, and how many people usually click on your ad when they see it. If a high number of users click your ad when they see it, this means your quality score is high.
How Is PPC Price Calculated?
The minimum amount you have to pay per click for a relevant keyword is provided by Google. Google checks the minimum bid and the highest bid to give a range of what cost you might have to pay to rank among the paid searches. You can pay higher from the top-most bid to rank on top of Google from the existing bids.
Once your ad starts running, your ad rank will vary depending on your quality score and the amount paid for the ad.
This is how your ad rank can be calculated
Ad Rank = Max Bid X Quality score
The PPC cost for a small business, or a campaign intended for a niche with minimal traffic, is typically low. On the other hand, if a PPC campaign is required to run for a niche keyword with high traffic it will cost you much more per click.
How is The PPC Budget Calculated?
How much your PPC budget depends on how much you have bid for a click and the number of customers you want to reach. Here’s the formula for the budget you must have to run a PPC campaign.
Estimated Budget for PPC Campaign = Cost per click you may pay x Total clicks you intend to achieve.
For example, your cost per click is £2 to rank for a keyword, and if you want to reach 15 clicks per day, then you should have a budget of: £2 x 15 clicks = £30 per day.
PPC has a higher ROI, so businesses can expect a profitable campaign if run wisely. Similarly, if your niche has a higher conversion rate through PPC, the bidding amount increases. Therefore, you will need a higher budget for PPC marketing.
On What Factors Does PPC Cost May Vary?
Several crucial factors affect your Pay-per-click pricing UK. Here is what can influence the cost you pay for PPC marketing.
Types of Keywords Used
This type of keyword may also increase the PPC campaign cost UK. The keywords are generally analyzed according to their type. There are four types of keywords: transactional, commercial, informational, and navigational. Commercial and transactional keywords have a high conversion rate, which is why these keywords typically cost more than the other type of keywords and have higher competition.
What is Your Ad Rank
Your ad rank is your quality score multiplied by the amount you pay for the bid. To run your PPC campaign, your ad rank must fit in the auction. This means that if the volume and the competition on a relevant keyword turn out to increase, then Google might hold an auction for your ads and increase the price for PPC accordingly.
Additionally, if you want to reach your daily target, you must set your bid high to achieve a higher ad rank.
Your Campaign Bidding Price
You will need to set a bidding price for your campaign. The bidding price varies on the niche and the keyword you aim to target. The higher the bidding price will eventually affect the total PPC cost for businesses in the UK.
You may select the bidding price for Pay per click manually, or you can allow Google to automatically set the price, which seems most suitable to run a successful PPC campaign for a given keyword.
Number of Clicks You Want
The number of clicks you want to achieve from PPC campaign affects the overall budget you need to allocate. The reason is the number of clicks per day is multiplied by the Cost per click in UK to give an average for your daily PPC cost. Therefore, the higher the amount of traffic and clicks you want to reach per day will increase your PPC cost accordingly.
Business Target Audience
Always know your target audience before you run a PPC campaign. The relevant keyword defines the audience you want to target. The higher the audience and keyword volume, you can expect a higher bidding amount for the keyword.
Budget Set for PPC Campaign
Based on what you aim to spend on your ads and what objectives you want to achieve; you should set your PPC budget. You should manually set your budget initially to avoid overspending on PPC marketing cost UK.
Industry of Your Business
Your business industry significantly affects the amount you pay per click for your ad. The reason is that competitive industries have a higher number of businesses bidding for a specific keyword. These keywords have higher search volume and an increased tendency of reaching potential leads and convert.
Certain industries like healthcare, alcohol and more have certain restrictions while running a PPC campaign, affecting their bidding cost. Additionally, many businesses like spas, e-commerce, salons and more have longer sales cycles. This means they have to retarget, lead magnet, and nurture leads at various steps of the funnel, increasing your overall marketing cost.
What is the Average Cost of PPC as Per Business Size?
The average company spends 5 – 10% on their marketing efforts. As PPC offers high returns on investment, companies are more intending to invest in it. PPC pricing structure is also influenced by your business size. The larger the business size, the more the cost the company will have to allocate for PPC marketing to achieve higher traffic and conversions. Here’s how PPC cost affects business size.
|
Business Size |
Estimate PPC advertising cost UK |
|
Start Ups |
£300 to £1000 per month |
|
Small-Sized Company |
£1000 to £10,000 per month |
|
Medium-Sized Business |
£10,000 to £400,000 per month |
|
Large-Scale Business |
£400,000 to £700,000,00 per month |
Cost of Different Types of PPC Campaign
The PPC Google Ads campaign cost UK largely depends on what purpose you are running the campaign for. You may run different types of ads to achieve different marketing objectives. Here is a typical breakdown of different PPC services and how much it may cost per click
|
Type of PPC Campaign |
Average Cost-Per-Click (CPC) |
|
Display Ads |
£0.24 – £1.60 |
|
Search Ads |
£0.80 – £4.00 |
|
Remarketing Ads |
£0.48 – £1.20 |
|
Shopping Ads |
Varies (Typically £0.56 – £1.60) |
How to Make the Best PPC budget for UK businesses?
To create an effective PPC budget for your UK business, start by setting a clear goal. Do you want more leads, sales, or brand awareness? Use tools like Google Keyword Planner to research the cost of keywords in your industry. Get high performing keywords with high search volume but least competition.
Start with a realistic monthly budget based on what you’re willing to pay for each lead or sale. Test different ad copies, audiences, and keywords to see what performs best. Understanding the bidding cost, analyze how much you can spend daily while achieving considerable amount of clicks.
Now you will get a cost for your daily and monthly expenditure. Set aside a fraction of the budget, up to 15% for testing and improvements. You will now need to analyze your PPC campaign performance and make updates with your ad quality and budget accordingly for improved results.
FAQs
PPC management costs depend on the provider you opt to. This cost is influenced by the size of your business, the budget of your campaign and the goals you intend to achieve. On average a PPC management company may charge you from £500 to £3000 based on your requirements.
The average cost of PPC marketing is somewhere between £300 to £15,000. This cost influences the scope of your campaign and business size. Larger businesses may need to spend higher cost which may exceed to $400,000 to £700,000
The cost of PPC marketing in the UK is higher in many eastern European countries and the developing countries of Asia and Africa. The reason is based on niche traffic and sales. As in the UK, PPC can result in higher conversion and organic traffic, the cost of PPC tends to be higher. While countries like USA, Canada, Australia also have a higher rate of PPC marketing cost.
The several factors that affect your PPC campaign cost in the UK includes
- Business Industry
- Targeted Keyword
- Quality score
- Bidding Cost
- Number of Clicks
The following PPC advertising is available in the UK, each tailored to a different goal.
- Search Advertising
- Display Advertising
- Shopping Ads
- Remarketing/Retargeting Ads
- Native Advertising
Conclusion
PPC offers an effective marketing system that returns £2 for every pound spent. The high organic traffic, quality leads and improved conversion make this marketing aspect worth investing in. With PPC, you will need to pay for every click you get. The cost of PPC marketing depends on how much you bid for a single click and the number of clicks you want to achieve. The bidding cost is influenced by your industry, the keyword needed to target and the niche competition. If you set a high bidding cost with a better-quality score for your PPC, then you can expect your campaign to rank higher in the search results.
A8om Marketing Agency assist businesses with affordable PPC management cost UK. Whether competitor analysis to PPC campaign, or remarketing, our top marketing experts ensure that your business boost in leads and sales.
Aurangzaib Chawla
CEO