Google is a money making machine. The company rakes in billions each year and a large portion of that comes from advertisers who continue to spend thousands of dollars, month after month, on AdWords campaigns (Googles ad system). And why do they do this? Because a good campaign works. The operative word here being good. A good campaign yields a positive ROI. A bad campaign is no different than throwing your money out the window, and creating a bad campaign is easy.
Lets run some numbers
For discussions sake, lets take a look at what an improved PPC campaign could possibly yield your business. Well look at how an improved conversion rate and a decreased cost-per-click (CPC) can affect a campaign.
- Budget: $2,500
- Cost Per Click: $10
- Conversion Rate: 2%
- Value of Client: $500
With these stats your ad can be clicked on 250 times before the budget is exhausted. At a 2% conversion rate, your campaign will bring in 5 new clients. If each client is valued at $500 your campaign will yield $2,500 dollars in return. Having spent $2,500 that gives you a 1 to 1 ROI. Not good. Lets see how we can improve this.
Improved Conversion Rate
With a conversion rate increase to 4%, your campaign is now bringing in 10 new clients. Keeping the rest of the numbers the same as above, your campaign will yield $5,000. Thats a 2 to 1 ROI. Getting better.
Improved Conversion Rate and Decreased Cost Per Click
Lets also go ahead and lower your cost per click to $5. At this CPC your ad can now be clicked 500 times before the budget is exhausted. With our conversion rate improved to 4% your campaign is now bringing in 20 new clients, valued at $500 each, for a total yield of $10,000. Thats a 4 to 1 ROI!
Leave it to us
At Manic Metrics, we live for this kind of stuff. We monitor and measure everything we can about your campaign as often as we can. Our business is making yours better, so let us manage your pay-per-click advertising and see how much we can improve it! We promise you wont be disappointed.