Sponsored Advertising Costs

Typical sponsored linking (e.g. Google AdWords) campaign costs are as follows:

Setup: $500

Management Fee: 20% of monthly budget with a $100/month minimum.

There are no cancellation penalties or penalities for increasing or decreasing the monthly budget.

Sponsored Advertising Budget

We often get the following question. "What should we spend on Sponsored Advertising?" The answer is "It depends." Perhaps the best way to decide is to decide what is a client worth to you. For instance, if you are selling cars, and the typical car is $30,000, then a new client may be worth $30,000. However, if that new client becomes a repeat customer, and then buys five cars in the next 20 years, then the client is worth far more than $30,000. If the new client refers three other people who each buy two cars, then the one lead is worth something like $30,000 x 12, or $360,000. What is it worth spending to acquire $360,000 of new business? Of course, those cars might have a total loaded cost (cost of goods, labor, etc.) of $300,000. Even then, the net value of the new customer is $60,000. Would you spend $10,000 to increase net revenues by $60,000? Clearly yes. Use ideas like this to establish your sponsored advertising budget.

What about Search Engine Optimization?

Learn more about NFI's Search Engine Optimization strategies and offerings. There is a best approach to balancing Internet Marketing and Search Engine Optimization for each budget. We'll create yours. Getting started is easy. For more information, call 770-850-1640 today.