Budget for paid advertising


How much budget do you allocate for paid advertising of your web site?

I just started selling electronics through a website. I have a very limited budget for advertising, so i was wondering how and where i should spend my money. I was thinking about pay-per-click advertising, but i can’t compete with the HUGE stores. I was also worried about receiving too many visitors.


I can suggest you 20% of your entire budget, it’s a good amount, but not too much. But it depends on how much you would like to spend.

If I were to break down an online marketing budget, I’d probably do:

45% PCC
40% SEO
15% Social

How much all depends what you are getting back.

If you start with a small budget $10 a day, see how many conversions you get, see how many of those turn into actual sales, and if you are happy with the ROI, you can always up your daily spend.

I ran a PPC campaign for a wrestling company at one point to increase DVD and T-Shirt sales. We started off with $5 a day which gave us about 3 clicks, and then quickly upped the daily spend to $50 because the conversion rate was so high.

Test, test and test.

I am doing SEO of my web site myself, and my main focus is SEO. But 10% on PPC, but occasional.

The first place to start when considering realistic budgets for PPC/Adwords campaigns is to check out the estimated clicks costs for your phrases using the Adwords keyword tool.

You can then work back…

So if your target is 4 orders per day
and each click costs 0.10p
and your expecting a conversion rate of 1%

You’ll know that your going to need a budget of £40 per day etc for your Adwords to start with to have a realistic chance of hitting your targets.