Over the last few days I've been having a friendly and constructive online discussion with a an organisation that has been running Adwords campaigns for some time with success. In our discussions Click Through Rate (CTR) was an important component of the discussion because it was being used as a means of assessing profitability of a campaign.
I cannot say strongly enough that CTR can never be used alone as a measure of success since it tells nothing of the impact of CTR on final sales conversions. It says even less about the total potential profitability of any campaign.
Consequently I thought it might be useful to discuss CTR within the larger context of making money from any online marketing campaign (Adwords, SEO or any other way).
This table below shows you the enormous increase in profitability to be obtained by optimising the important variables in ANY Adwords campaign. The % changes used in the table are NOT unusual when a campaign is structured and managed properly. In fact you can expect to get much higher % changes.
The results tabled are the reasons why you cannot afford to miss the Google Adwords and Beyond Workshop on April 28th. If you don't attend you will be throwing money away. My workshop is guaranteed. You will these types of changes the day after attending the workshop.
Please CLICK HERE to complete the simple form if you want to attend the workshop... full day April 28th, Mercure Hotel Bedfordview incl all printed materials, lunch and refreshments and $100 Google Adwords coupon supplemented by a free 1 hour consultation with me after the workshop.
Broadly speaking the TOTAL profitability of any online sales campaign is governed by optimising the following factors:
Let's now take a hypothetical case and do some basic arithmetic. The base case is shown in the first column,.
| Monthly Campaign Scenarios | Base Case | IS Inceased to 50% | IS @ 50% CTR increased by 25% | IS @ 50% CTR increased by 25% & CPC reduced 25% | IS @ 50% CTR increased by 25% & CPC reduced 25% & Conv rate increased by 25% |
| Total impressions | 10,000 | 20,000 | 20,000 | 20,000 | 20,000 |
| Impression Share | 25% | 50% | 50% | 50% | 50% |
| CTR | 4.00% | 4.00% | 5.00% | 6.25% | 7.81% |
| CPC | R 2.00 | R 2.00 | R 2.00 | R 1.50 | R 1.50 |
| Conversion rate | 5.00% | 5.00% | 5.00% | 5.00% | 6.25% |
| Profit per sale | R100 | R100 | R100 | R100 | R100 |
| Number of clicks | 400 | 800 | 1,000 | 1,250 | 1,563 |
| Cost of clicks | R 800.00 | R 1,600.00 | R 2,000.00 | R 1,875.00 | R 2,343.75 |
| Number of conversions | 20 | 40 | 50 | 63 | 98 |
| Profit per sale | R 100.00 | R 100.00 | R 100.00 | R 100.00 | R 100.00 |
| Total profit before click costs | R 2,000.00 | R 4,000.00 | R 5,000.00 | R 6,250.00 | R 9,765.63 |
| Total NET profit | R 1,200.00 | R 2,400.00 | R 3,000.00 | R 4,375.00 | R 7,421.88 |
| Profit % Increase Over Base Case | 100.0% | 150.0% | 264.6% |
518.5% |
This table shows you the enormous increase in profitability by optimising the important variables in ANY Adwords campiagn
The % changes used above are NOT unusual when a campaign is structured and managed properly.
The above results are the reasons why you cannot afford to miss the Google Adwords and Beyond Workshop on April 28th.
If you don't attend you will be throwing money away. My workshop is guaranteed. You will these types of changes the day after attending the workshop.
Please CLICK HERE to complete the simple form if you want to attend the workshop... full day April 28th, Mercure Hotel Bedfordview incl all printed materials, lunch and refreshments and $100 Google Adwords coupon supplemented by a free 1 hour consultation with me after the workshop.
ALWAYS REMEMBER IT IS THE ADS THAT GET CLICKED NOT KEYWORDS... ie the focus of a successful campaign must be on the ads
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