Welcome to part 1 of 7 exploratory Blog posts that will reveal PPC budgeting secrets that will help optimize your CPAs. In this week’s posting, find out why it’s important to have a PPC budget, how to determine your PPC budget and how to set a realistic time period to spend your budget. Let’s get started!
PPC is a bidding system, and consequently, it is all too easy to spend your budget quickly without a return for the iGaming industry. In order to manage a pay-per-click (PPC) campaign that maximizes results, you must first set your PPC budget. Having a predetermined budget allows you to set conversion goals and determine what you feel is a reasonable return on your investment.
The best way to set your PPC budget is according to the value of your cost-per-acquisition (CPA). Calculating the lifetime value of a player is a crucial component to knowing your return-on-investment (ROI) because it allows you to determine how much to invest in each PPC campaign.
Once you know what the average CPA of a player is, you are then in a position to compare that against other variables, such as average cost-per-click (CPC) and click-through-rate (CTR) by using a traffic estimator tool. From there, the budget you set for each PPC campaign will reflect your pre-existing business model.
Once you have determined your PPC spend, you need to decide the period of time over which you will spend your budget. Like traditional media buys, you need to allocate time to find out what works best for you, and trim off what does not work. By setting your budget according to your average CPA, you can set reasonable goals and expectations, and cut the campaigns that do not reach those goals over your defined time period.
There is a tendency when you first run a PPC campaign for iGaming to start off with a small budget test campaign to see what the ROI will be like with a full budget. This idea can lead to a misleading ROI as you will not have a decent budget to be competing for the top ad positions. It’s a good idea when first starting out to increase the test budget and bid on a few keywords related to your business so you can calculate whether it’s worth investing more money and time into PPC.
So lets’ sum things up:
1. Set your PPC budget by determining your CPA. Knowing the lifetime value of a player will help you determine how much you want to invest in attracting that player.
2. Set up a time frame to determine which PPC campaigns are working, and which ones aren’t. Knowing this will help you invest in winning PPC campaigns in the future, and avoid spending too much money on a PPC campaign that won’t have a good ROI.
3. Don’t skimp on your PPC budget, especially if you’re just starting out. If you haven’t set aside a reasonable budget, you won’t be able to compete for the keywords that could prove profitable for your PPC campaign. If you don’t have the budget to land the top ad positions, you may erroneously conclude that your PPC ad was unsuccessful at driving business to your site.
Next week on October 8th, we delve into Part 2 of PPC Budgeting Secrets to Optimize your CPAs, and look at how to track your budget from click-through, to the registration level, to wagering, and how this helps get the best results from your PPC campaigns.
- Get Ready for Our Seven Part Series on PPC Budgeting Secrets to Optimize your CPAs
- Part 2. Tracking Your PPC Budget
- Part 7: Recapping PPC as an Acquisition Strategy
- Part 4: Dividing your Campaign Budget Across Markets
- PPC Metrics to Calculate ROI
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