As experts in the jewelry industry, we’ve helped hundreds of jewelers become successful when it comes to Pay-Per-Click (or PPC) advertising. One of the most common questions we’re asked before a jeweler signs up for our PPC services is how much they should spend.
Unfortunately, this is not a simple question, and requires a great deal of thought. After all, a jewelers monthly ad spend can make all the difference in terms of garnering the results they’re looking for. This is why we’ve put together a few tips to give jewelers insight into defining the proper PPC budget in 2020.
Defining Your Goals
Clearly defining goals is a critical first step to figuring out the right budget. Let’s face it; no one is interested in spending advertising dollars for fun. Coming up with clear goals helps jewelers make smarter decisions once their pay per click advertising campaigns are running.
Here are a few key questions jewelers should ask themselves:
- What is the lifetime value of each customer I gain?
- How many customers do I hope to acquire and in what time-frame?
- Is there a limit to my marketing budget?
- Am I committed to making ppc ads a staple of my overall marketing strategy or is this just one small aspect?
Once these questions are answered you can start to create a budget.
Two key components that determine the success of a ppc marketing campaign is your CPC (“cost per click”) and Conversion Rate.
Researching Average Cost-Per-Click (CPCs)
First things first, it’s important to figure out how much a jeweler should have to pay each time a user clicks on their PPC ads.
To do this, you can turn to a digital marketing team -- such as GemFind Digital Solutions -- who can thoroughly research what your direct competitors are spending per click. This will give you a clear picture as to what you should expect to pay whenever a user clicks on one of your ads.
Approximating Conversion Rates
Conversion rates are arguably the most important part of the entire campaign. A slight change in conversion rate can mean the difference between failure and amazing success.
Below is a basic list of average conversion rates.
- Under 1% = Bad Conversion Rate
Less than 1 out of every 100 visitors becomes a customer
- 1% – 3% = Average Conversion Rate
1 to 3 out of every 100 visitors becomes a customer
- 3% – 10% = Above Average Conversion Rate
3 to 10 out of every 100 visitors becomes a customer
- Over 10% = Where Every Jeweler Should Strive To Be
More than 10 out of every 100 visitors becomes a customer
It’s important to note that conversion rates can vary dramatically and depend on the value your website and products provide vs. the competition along with other factors such as your location.
As you can see, defining a budget can prove to be a complex process. With that being said, if you choose to partner with a team of digital marketing experts (like ours) then the job becomes much easier.
At GemFind, we run a comprehensive analysis of a jeweler’s direct competitors to help find the best budget to ensure your PPC campaigns thrive. Contact us today to get started.