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Saturday, February 16, 2008

Pay Per Click TIPS

  1. Include search term in both the Title and the Description.
  2. Look for “search term suggestions” on PPC sites.
  3. Usually get 40-45 characters for Title; 150-200 in Description

For Max Bid Calculation:

Per Proforma, we are spending approximately 7.5% of “Profit” on BGP “out of pocket” marketing and advertising direct expenditures (not personnel, support costs, etc.)

To Calculate Actual Cash Value (ACV) of client derived from PPC sites:

Multiply, Percentage of visitors visiting web site that make a sale (per 100 visits):

X times, How much profit in dollars you make per sale:

X times, Percentage of profit you wish to spend on clicks:

/ divided by 100

= the most you should pay per click.

For example :

How should you decide how much to bid? Let's look at an example:
Let's say that karishma (from Mary's Bike Shop) get's 100 visitors to
her site, and that for every 100 visitors, 5 of those visitors buy something. Mary also knows that on average when a customer buys something she makes $10 profit. That means that:

5 paying customers x $10 profit per customer = $50 profit

$50 total profit / 100 visitors = 50 cents per visitor profit

So from some simple math, we see that even though every visitor does not buy something, on average a visitor is worth 50 cents profit for Mary's store. That means that karishma can afford to pay up to 50 cents per click to "break even". If she pays any more than 50 cents per click she will lose money, if she pays less than 50 cents per click, she will make money. Mary may decide that she wants to spend at most half of her profits on advertising... this means Mary wants to be listed as high as possible in the listings and pay at most 25 cents per customer.

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