Fence Marketing Pros

PPC Budget Guide for Fence Contractors

ppc budget

Successful local fence companies use a variety of methods to attract customers and grow their businesses. While word-of-mouth and traditional advertising are important, most home and business owners looking for someone to construct a fence search for help online first. As such, digital marketing is a top priority. 

To get the most from your online marketing efforts, you must implement a variety of tactics, including pay-per-click advertising. Whether you’re new to PPC campaigns or looking to improve an existing one, knowing how to set a PPC budget will ensure you get the most value for your spending. 

Use this guide to PPC ads budgeting from Fence Marketing Pros, the highly rated fence advertising experts, to determine how much you can spend to achieve your marketing goals. 

The Basics of PPC Campaigns and Budgeting 

Pay-per-click advertising refers to a type of campaign in which you pay for the ad only after a user clicks on it. Ideally, this results in a sale that more than covers the fee for the click. 

Search engines charge for PPC ads based on how much the advertiser is willing to pay for placement in the search results for specific keywords. The more your company will spend for a click, the higher its placement in the sponsored results section at the top of the page. Search engines use other factors, like the ad quality and keyword relevance, to determine placement. However, with all other things being equal, the maximum bid is the deciding factor.

Since the ultimate goal of digital marketing is to rank as high as possible in search results, your first instinct may be to spend more to get your advertisements into the first few spots. However, this can eat up your PPC budget fairly quickly without necessarily giving you the results you want. 

Strategic ads budgeting offers a better approach to getting the most value from your PPC campaigns. Regardless of how much you can spend, a clear budget prevents overspending and increases your likelihood of profiting from the investment. 

How To Set a PPC Budget in 3 Steps 

PPC ads budgeting requires doing some research and careful calculations to determine what you can afford to spend to reach your target audience. Most advertisers use the following three-step process to establish their spending limit. 

1. Determine How Much Profit You Want To Make 

Creating successful PPC campaigns begins by working backward from the amount of money you want to make from them. A measurable outcome provides a good starting point because you see upfront what you need to do to achieve it and have an automatic performance indicator that you can use to evaluate ad campaign success. 

Your profitability goal can be whatever you want it to be. Once you have a dollar amount, you need to determine:

  • The average order or project value 
  • The gross margin percentage (the revenue minus the cost of goods divided by the revenue)
  • How many sales you want to get as a result of the campaign 

Consider, for instance, that you want to earn a profit of $10,000 from your PPC ads. The average fence installation costs $5,000, with a gross margin percentage of 30%. Assuming that you want to get 10 bookings from the campaign, your maximum PPC budget is $5000: The average order value * the number of sales * gross margin percentage – the desired profit = PPC budget. 

2. Perform Keyword Research 

To get the most PPC benefits and allocate funds most effectively, identify the best keywords to bid on. The keywords need to produce enough search volume to produce the clicks you need to achieve the desired results. In other words, if no one searches for those words in your location, then your ad won’t get any clicks. 

Targeting your keywords to a specific segment of the sales funnel can also influence how you allocate your PPC spending. Keywords geared to the top of the sales funnel typically cost more. Also, they may not produce the best quality leads since they target people who are in the early stages of shopping for a new fence. 

Bidding on keywords related to the middle and bottom of the sales funnel, on the other hand, can get your ad in front of people who are ready to buy, thus improving your return on ad spend (ROAS). When someone searches ad keywords at this stage, they are more likely to reach out, which means you’ll have more competition for clicks and have to pay more, but the payoff means a better chance at a sale. 

3. Analyze Past Performance 

Before setting your budget and launching a campaign based on certain keywords, review the performance of previous campaigns to determine whether you’ve set an adequate budget for achieving your goals. Google ads allows you to review results to determine whether you lose impressions due to an inadequate budget, which means people are searching terms related to your keywords but not seeing your ad because your budget prevented a successful bid. 

You can use this information to adjust your budget to capture the maximum number of clicks. If you divide the number of missed impressions by the average click-through rate for your campaign, you’ll get the number of missed clicks. Multiply that by the average cost per click to determine how much to increase the PPC budget to fund that campaign. 

Contact Fence Marketing Pros To Launch Successful PPC Campaigns

Fence contractors have a lot on their plates, and the process of establishing a PPC budget isn’t always simple and straightforward. Fence Marketing Pros can help at every step with guidance for effective PPC tips on budgeting and creating high-quality ads that grab attention plus much more. These digital marketing experts can help you grow your fence building company with effective, proven techniques that put your business in front of customers looking for your services. 

Don’t struggle to figure out PPC advertising on your own or waste money on ineffective campaigns. Reach out to Fence Marketing Pros now. 

Fence Marketing Pros is proud to be a Google Partner. We’ve been certified in search, display, and video advertising.