Here’s what a ROI-worthy search advertising budget should look like in 2022

30-second summary:

Digital marketers experience a potential ROI tunnel vision when it comes to search advertisingSeriously, do you need to burn dollars over those high-competition keywords? It can be a drain on your business.

It is a little overstatement to say that digital marketing success depends on many things. Your skill set, your team, and your knowledge of the market in which you want to succeed, for your clients or yourself.

How often do you think about your spending? We’re referring to your search advertising budget.

It seems very simple to run paid media ads on Google Ads and the Google Display Network, Facebook and Microsoft. You bid on keywords and define your target audiences. Then, you place your ads for the duration of the campaign.

Although you might not believe that budget is important beyond what you have available, I think it does. Especially when you consider that every dollar matters and have potential tunnel vision about ROI.

You will only know what your ROI-worthy search advertisement budget will look like in the end. However, this article will show you how to create your paid media budget so that it is gold in 2022.

The basics: What are you looking for?

You want to know how your search advertising budget should be in 2022.

Let me start by asking you a few questions: Who are you? How big is your company? How much money do you have available for search advertising? And, most importantly, what are you looking to achieve?

You will not know all the factors involved, but I would ask these questions if I was designing a search advertising budget in 2022.

What are my goals for my campaigns?

Your budget will reflect your goals for your campaigns. What you want should reflect your expectations for growth.

Are you an affiliate marketing blogger looking for more traffic to your site? Do you work for a law company and need honest form-fills? Are you an ecommerce company that retargets your customers for products they have viewed?

It all matters because your goals will determine how you approach your search advertising and your budgeting.

Closing in, what do you need?

Once you have decided what you want, you can start to plan how you will get there. We’ll be discussing budgeting here.

Only you can determine what your search advertising campaigns should produce (the ideal results will be based upon the goals you have set).

If you want to grow your business by $2,000 per month, you will need to do some math.

What number of leads did your current search advertising campaign bring you? How many of those leads convert? It is important to know your conversion rate and how much each lead is worth.

These things will help you to plan your budget.

If you expect a conversion to bring $500 and your cost per leads is $10, you will need to generate 80 leads per month via search advertising.

Here’s how it works.

To reach your $2,000 goal, you need to convert four leads per month. Five percent of all leads are converted. Four is 5% of eighty. To reach your goal, you will need to generate 80 leads per month.

If you pay $10 per lead then your search advertising budget should be $800 per month.

That’s a perfect situation. This is assuming that you can make it happen consistently month after month.

This budget would be ROI-worthy in a perfect world.

Campaigns can fail and certain methods might not work for you.

How can you make sure your budget and effort are worth it?

It’s all in the details: Be smart about bidding

For 2022, you want to create a search advertising budget that is ROI-worthy. This means that you will want to compete in the top leagues. What do they think you’re doing differently than you? Are they able to give you some insights into Google Ads?

It really all comes down to the keywords you use for your ads.

It works in SEO too, in case you didn’t know: The more popular, general and competitive keywords, such as “SEO company”, will be very expensive to bid for. You may not be financially able to maintain this campaign for very long and it will result in a lot wasted money.

Consider your competitors of similar size. You probably have a similar budget to them. They may have a better keyword bidding strategy than yours if they are outperforming you.

As an example, you might not want to or need rank your ads for SEO company.

You will pay less for a longer-tail keyword like “SEO agency to link building”, and you will get fewer monthly searches. However, as with any sales funnel, searchers who are more specific tend to be more likely to convert.

Remember that as you become more specific, your landing pages will need to be better suited to your ads.

A long-tail keyword search will require a long ad and a lengthy-tail landing page. Your ad should deliver what it promises. You can create content that is related to link building and hiring an SEO agency.

These are the funnels. People want content that is relevant to their current stage in the buyer’s journey. They will be more likely to convert if they can see it. The same applies to SEO.

This is the place to go if you want to discuss optimizing your search advertising ROI.

What are you going to do next?

Marketing accounts account for between 7 and 12 percent of a business’s annual budget. It is a necessary expense for growth.

These tips will help you ensure that your search advertising spend is worth it. You need to know your strengths and limitations as well as your bidding limits.

You can build amazing things if you are smart.

Kris Jones, the former CEO of digital marketing network Pepperjam and the founder of its affiliate network, is now selling it to eBay Enterprises. Kris Jones founded LSEO.com, a software and SEO company. He has also previously invested in many successful technology companies. Kris is a skilled public speaker. He is also the author of ‘Search-Engine Optimization: Your Visual Blueprint for Effective Internet Marketing’ which is one of the most popular SEO books. It has been sold close to 100,000 copies.

Subscribe to the Search Engine Watch Newsletter for insight on SEO, the Search Landscape, Search Marketing, Leadership, Podcasts, and More.

Join the conversation on LinkedIn or Twitter.

Here’s how a search advertising budget that is ROI-worthy looks in 2022 Search Engine Watch.