It depends on the platform.
For Google Ads, LinkedIn Ads & Yelp Ads – our agency does the following:
- Determine average CPC (Cost Per Click)
- Multiply by 10 (to factor in 10 clicks per day)
- Multiply by 30 (average number of days in a month)
- That will give us a minimum budget which provides enough click data to make educated optimizations.
- As an example, let’s take a $10 average CPC multiply it by 10 clicks per day and multiply that by 30 days in a month. $10 X 10 X 30 = $3,000 minimum monthly budget.
For Facebook and Instagram, it works a little bit different:
The Facebook recommended budget comes from conversions (leads/purchases). For full optimization, we look for 50 conversions a week. So if a conversion is $10, we’re looking at a $500/week or $2k/month budget. The more budget, the more room we have to test different optimizations to find what suits your business the best.
Of course, this is just a recommendation. Budgets can be more or less, and estimates are not always 100% accurate.
If you would like a PPC Marketing Analysis completed for your business (which includes a budget recommendation), please feel free to reach out to our agency founder, Ed Weeks, Jr. He can be reached via phone or text on his cell, (845) 702-0008.