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Making projections For PPC Campaigns

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi Everyone,

 

I am writing to learn from you about making Projections for the accounts for Paid Media - PPC in particular.

 

For accounts that have historical data, we could take that data and make projections based on it. Also take help from Keyword & Display planner to get forecasts and estimates. All in all we could propose projections in such cases.  

 

Now the challenge for me is been, I would want to make projections for new accounts that had never run Digital Campaigns and also are new in the market. I just have the Budgets or sometimes I would be required to propose Budgets and make projections for the following metrics :  

 

Clicks, Impressions, CTR, Cost, Avg CPC, Conversion Rate, CPL, Conversions/Registrations.  

 

How and what should be my approach in the later mentioned case, to make projections. What kind of formulas should I use & what data and benchmarks should I consider to come up with projections. It would be great help for me if you can share your knowledge about the same.  

 

Many Thanks

Mahesh Reddy 

Re: Making projections For PPC Campaigns

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭

Hi Mahesh, how are things?

 

For my point of view as an advertiser, making projections for accounts that have never run before should consider one thing: No matter how hard you analyse the data and tools that you use, since there's no historical data, every number will still be ESTIMATES and CAN CHANGE once it is set up.

 

This is very important, because no matter what you do, they will be based on something else rather than actual numbers.

 

With that in mind, I think that the approach may vary from one professional to another, but as best practice, usually you tend to use two things:

 

  • Your experience and base from another campaigns
  • Tools such as Keyword Planner and DIsplay Planner

They are not the only resources of course, but they tend to be the primary ones, since they are integrated with Adwords.

 

One thing to keep in mind, is that those tools uses average numbers from across multiple campaigns, so every number you see in there, may change once you use them in your account, specially because of things like Quality Score, Relevancy and all these types of things. That's why it's important to remember that no matter how good or complicated formulas you use, they're always estimates.

 

From the budget, you can assume a desired CTR% or maybe one CTR% that you know you can accomplish, and then use the keyword tool to get a base for average CPC. That way you can do some reverse math and calculate the number of clicks, impressions and some other data.

 

I'd say to not to loose to many time on those first projections, since they will change anyway. Of course you should use some numbers, like the tools and experience, but don't overthink them as some advertisers do.

 

Hope this helps.

 

Cheers,

Leandro Martinez


Leandro Martinez | Basta1Click

Re: Making projections For PPC Campaigns

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hi Leandro,

Things are fine.

Thanks for your reply.

Cheers
Mahesh

Re: Making projections For PPC Campaigns

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

thorough answer from @leandrofm i'll just add one thing

 

When you do projections remember to add in the other costs i.e. agency fees or staff weighted time cost per hour.

 

Those can be the difference between profit and loss, so many companies tell us they are making 'x' ROI and are happy then I add in their agency fees/internal staff time and they are making negative ROI

 

Great thing is now with Calculated Metrics in GA you can actually add in these items to get a real ROAS.

 

good luck.

 

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