Real Life Example: What's your call...

[Durtdawber]

I posted yesterday about Daily Budget vs. CPC. If you guys are game, help me through a real life example. Below I have posted my Adword cost for the month of June, so far. This image is sorted by impressions. Here are some parameters for my business...

Image Hosting Service
Campaign is a $4.00 per day budget
Cost of service to user is $4.00 per month payable in 3 or 6 month increments.

Basically, I am assured of at least $12.00 on each sale since they are locked into a 3 month payment. These are subscriptions so at least one automatic renewal is assured.

Help me through analyzing these numbers.

http://www.image4u.org/demo/ScreenShot001.jpg

[seobook]

I would say that when you are analyzing what $60 is doing across a group of keywords it might not be sufficient enough of data to know what to do.

I would recommend raising your budget to get faster feedback.

[PixelStreamed]

I would say that when you are analyzing what $60 is doing across a group of keywords it might not be sufficient enough of data to know what to do.

I would recommend raising your budget to get faster feedback.

agree with seobook....the more data you have the less error there will be in your analysis...your budget is a little to low to make the most out of it...

also, from the data you provided from Google we can't analyze much. unless you are tracking the hits from your Google campaigns that actually convert into actual sales...if you are getting a high click-through rate but no conversions into sales then what is the use of the high-click through rate in my opinion. when analyzing you are trying to find keywords that give you the most on your ROI and then throwing out keyword campaigns that don't work....title of the campaigns and descriptions can also have an effect on your conversion numbers, don't try to hype up your website or products if the hype isn't true or if it's misleading.....yes it will lead to more visitors to your site but once they get there if it wasn't what they were looking for based on your descriptions then it was wasted advertising money on your part because they would not have converted into sales.

factoring in all these over a period of time to see what works best is your best bet. it's not something you can do overnight..it takes work to fine tune your campaigns, but if you do it right you will start seeing a better return.

[seobook]

unless you are tracking the hits from your Google campaigns that actually convert into actual sales...

they are, but they should raise their daily budget. so that the account is proffitable let good keyword selection and targeting determine how much you spend and not some arbitrary self imposed cap

[PixelStreamed]

they are, but they should raise their daily budget. so that the account is proffitable let good keyword selection and targeting determine how much you spend and not some arbitrary self imposed cap

LOL...didn't realize he had the conversion columns on the image..thanks for saying something sebook...it's about time to hit the sack here

basically just looking at the conversion columns and selecting the keywords that cost you less per actual sale and throw out the ones with the highest cost per sale...the total number of clicks for each campaign don't really make a difference because they get factored out in the ratio..i'll try to add more later..goodnite

[AussieWebmaster]

I would not throw any of your terms away just yet...
basically you have only one term the one that has had 36 clicks for 6.01 and no sale... that should be considered for removal... but it does sit in an average 6.2 position...
You want to play a little with the landing page for that term... look at the creative and re-examine how and what you are selling with it... maybe the term is a stretch (but gets some traffic) and the visitors are looking for a different interpretation of the term.
Even with that term and the few others that have yet to make a sale... your total cost is well in your range.
Thus before playing with the creatives and dropping keywords I would isolate the landing page and see if you can improve on conversion rates that way. I recommend doing this first since you are sitting in a profitable situation for the overall campaign and can isolate a few of the terms to separate landing pages and see if you can impact the conversion rate...
Once that is accomplished you can concentrate on the individual creatives for improving CTR - lowering the price slightly... but more importantly increasing traffic ... this could also be done by increasing the spend.

[cline]

What's your marketing allowable -- how much are you willing to spend to acquire a customer?

Unless that number is unusually small, it looks to me like you shouldn't discontinue any terms and you should raise your daily budget.

[AussieWebmaster]

What's your marketing allowable -- how much are you willing to spend to acquire a customer?

Unless that number is unusually small, it looks to me like you shouldn't discontinue any terms and you should raise your daily budget.

I was looking at the statement of $12 a sale... though is that the profit or total cost... in which case obviously the profit needs to be factored before PPC so numbers can be projected...
at the $12 price (an allowing the recurring billing to be even more profit) increase spend.

[Durtdawber]

I'm going to absorb what you have said and make some adjustments. On the surface it sounds like the following would be my first steps:

- increase my daily budget
- calculate what kind of profit I want and adjust numbers accordingly
- analyze the numbers once I have the data of what the full potiential of the campaign can be.

Thanks!

[seobook]

I'm going to absorb what you have said and make some adjustments. On the surface it sounds like the following would be my first steps:

- increase my daily budget
- calculate what kind of profit I want and adjust numbers accordingly
- analyze the numbers once I have the data of what the full potiential of the campaign can be.

Thanks!

if you are going to heavily rely on pay per click ads you will want to do A/B testing as well, but other than that you got it :)