PPC can cost whatever you want it to cost, because you pay only for clicks. In theory you could buy one click per day for $1.
While the minimum budget to do PPC is $1/day, it is very difficult to get any kind of results with that small of a budget. Depending on what industry you are in, the cost will be between $5 and $30 per day to get started.
At NetCom we work with companies who spend $200-$4000 per month on PPC advertising.
But ultimately, it’s not the cost you focus on, it’s the profit. If you had a system where you could spend $1 and make $3, how much would you want to spend? As much as possible!
Traditional advertising channels, like magazines, newspapers, radio, and TV, restrict customers to set pricing. For example, a full page ad might cost $500 or a 30-second radio spot could cost $250. In contrast, pay-per-click advertising costs are completely variable.
With PPC, you only pay when a prospect clicks your ad. In addition to that, PPC offers very low minimums. Although it would be highly inefficient and not recommended, you could buy only one click per day and spend less than $50/month.
With PPC advertising, your ad simply disappears from the internet when you hit your daily budget.
This feature is very nice for small advertisers as it allows them to “test the waters” without investing significant capital.
How much does PPC cost?
While the costs of running a PPC advertising campaign can vary, here are the typical costs:
- Ad Costs:
- $1-3 per click
- Management Costs:
- $59-$179/month with Netcom
- $1000+/month with other PPC companies
To run a small PPC campaign, you can expect to invest around $300/month.
For that $300/month, you can expect to get between 60 and 200 prospects to your website. Since PPC is extremely targeted, the prospects will be highly likely to call you or make a purchase.
A good PPC campaign will convert at around 4%, meaning for every 100 clicks, you will get 4 leads or sales. At a 4% conversion rate, your 60 to 200 clicks equals 3 to 8 customers per month.
So the question becomes, would you pay $300 for 3 to 8 new customers? That probably depends on what you are selling and how much you sell it for.
Can PPC work for your company?
I offer a free mini-consultation session to help you understand PPC advertising. I’ll ask you a few questions about your business and share my industry expertise.
After 5 minutes I will be able to tell you if PPC can work for your company. After that, you are free to ask me any questions you may have.
Interested? Pick up the phone right now and call me at (503) 406-3660.