A Bit of a Bribe to Complete the Survey... Very
Useful Interactive PPC Calculator
Many thanks to those who completed the survey... about 5% of my list
did so.
I would like to aim for a conversion rate of at least 10% of the list
so I'm offering a small bribe to encourage you to complete the survey.
The Bribe is...
Every website with a need to achieve an outcome must measure the
conversion rate to the outcome. Conversion rate is defined as Number of
Conversions divided by Number of Times the offer or web page was seen.
In the case of a PPC campaign conversion rate is number of conversions
divided by the number of clicks. A conversion can be anything you
like... the 2 most common are sales and web form (lead) completion.
I am often asked 3 questions about running an Adwords PPC
campaign...:
- What is a good conversion rate?
- What is amount I can spend on a click?
- What should my daily budget be?
There are no simple answers to these questions and all are
interrelated anyway. BUT and this is important...
Click here for the
survey form...
Before starting a PPC campaign you need to have an understanding of
the following...
- Value of single conversion
- Maximum possible click price to break even (max CPC)
- Likely total profit (or loss) based upon different conversion
rates, and different actual cost per click (CPC)
Knowledge of these variables and how they interact will provide you
with the confidence you need to start a successful PPC campaign.
Conversion Factors Interactive Excel Calculator
Because all these variables interact in some way or another it is not
a trivial matter to come up with the right answers unless a spreadsheet
is used.
I have created such a spreadsheet which you can use to manipulate all
these variables at the same time and come up with accurate answers.
Here's an example from the calculator:
For 19 sales per day of a product with a profit margin of R75 per
product sold then the maximum possible CPC to break even is R3.75 at a
conversion rate of 5%. If an actual CPC of R2 could be achieved the
campaign would make a profit of R665 per day
Click here for the
survey form
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