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How to Forecast and Budget Your Paid Search

How to Forecast and Budget Your Paid Search

How to Forecast and Budget Your Paid Search

I’d admit, for marketer, this headline is mundane. Couldn’t I have come up with a more motivating one? No and here’s why…forecasting and budgeting is essential and there is no reason to candy-coat the absolute importance of it for starting or maintaining a paid search campaign.
I contend that one of the most common questions asked of us from new clients is, “What do you estimate our paid search budget will be?” As a business owner it’s crucial to know because it directly affects your financials and influences your bottom line. Likewise, as a service provider it is essential because it guides the performance metrics used to manage a profitable paid search campaign.
Because is so important, let’s talk about how it’s done.
First, estimating a budget for a paid search campaign is not a perfect science. There are number of universal dynamics that the data inputs required to establish a budget. They include:
1. Website conversion
2. Competition
3. Average sales value of your product/service
4. Seasonality
5. Unforeseeable Market Trends
6. Your profit margins

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