PPC Conversion Calculator

Will Google Ads work for your business?

A lot of customers ask us whether Google Ads will work for their business, and what their monthly budget should be. We built a handy calculator to answer this question. There are several factors that will determine the success of a Google Ads campaign, use our calculator to look at a forecast for your business.

Watch our video guide below to see how you use the calculator.

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PPC Conversion Calculator
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£
%
Look at our guide for how you can get your conversion rate.
%
How many enquiries does it take you to get a customer? If you don't know then 20-25% is fairly normal.
£
This is the average value of a customer or a sale, e.g. how much does a new customer spend with you on average. You may want to take into account the lifetime value of a customer, e.g. if the average customer buys from you multiple times. This will give a more accurate view of the return on investment.
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How to complete the Google Ads (PPC) Calculator

In order to get accurate results from the calculator you will need to be able to input accurate metrics. These metrics are critical business KPIs that business owners should know, but in our experience are often not something that everyone has immediate access to.

Knowing this information will help you better understand your business as well as gaining a more accurate forecast of how Google ads can help your business grow. 

We have compiled a quick guide for each metric.

This is super straightforward, this is just the amount you will spend each month on google. If you have never ran Google Ads before you will need to allocate a monthly budget. Our recommendation would be to view this as a test and understand that you may not get an immediate return, so don’t invest more than you can afford to lose.

That said we would recommend a minimum starting budget of £1k per month in order to get statistically significant results. This will vary from industry to industry but if you have no idea where to start that is a sensible starting point. 

Google charges you whenever a user clicks on your ad. The power of Google means that these clicks will have specific intent. For example if someone searches for Estate Agent Near Me and then clicks on an Advert for a local estate agent the intent is clear. CPC’s vary depending on the industry and level of competition along with a range of other factors that we wont go into here.

In order to get an accurate result we need to put in an accurate CPC, which requires some keyword research. The best way to get this information is to use Googles Keyword Planning tool, and I have created a quick guide for that here. If you follow the guide you should be able to get an accurate CPC for your industry.

If you don’t have the time for we would be happy to help you, simply schedule a meeting with us and we would be happy to prepare a forecast for you.

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In order to understand how many enquiries or sales you are going to receive you need to know how well your website converts website visitors into enquiries or sales.

For example if 100 people visit your website and you get 5 enquiries your conversion rate would be 5/100 = 5%. How well your website converts traffic into enquiries is a huge part of whether any marketing gives you a good return on investment.

Often improving website conversion rate (conversion rate optimisation) is as important as any marketing, we have a guide to improving your conversion rates here. There are a range of tools to measure your conversion rate, the most common of which is Google Analytics. We have created a quick guide to seeing your conversion rate in Google Analytics here.

If you don’t know your conversion rate you can arrange a consultation with us here and we can help you set this up, or you can use 3% which is an average conversion rate for a typical website.

However conversion rates do vary a lot depending on the industry.

conversion rate

This is how many enquiries you need to make a sale.

If you are running an ecommerce website you should put 100% here as the website conversion rate will measure sales, if you are a service business, your website conversion rate will deliver enquiries. You need to know how many enquiries it takes to make a sale.

If you sell your service to one in every four enquiries then you would put 25% in here.

 

This is the average order value for your business. This final part of the calculation works our the value delivered to your business in revenue for the total of all the conversions. Whilst your sales value may change from customer to customer you should put a realistic average value in here to see how much revenue should be generated by your advertising.

Remember that this is just a guide, not a guarantee of performance. If you would like help understanding how Google Ads may work for your business, why not book a free marketing consultation with our team and we can help you work out the potential value.

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