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With paid search, you can go on for a long time thinking that it's making you money. The figures seem to suggest it's successful. Your keywords and ads seem to be working. Your click through rate (CTR) is good. Your conversion rate is fine and your cost per conversion and ROI are acceptable.
But just looking at your results on the surface can lull you into a false sense of security. Because you can be making a key [url=http://www.gotprintsigns.com/abercrombiepascher/‎]abercrombie pas cher[/url] mistake when interpreting these. [url=http://www.wellbutrin.fora.pl/forum-testowe,1/moncler-outlet-oval-picture-frames-how-to-select,8627.html#8833]moncler outlet Oval Picture Frames - How to Select[/url]
The criterion of success for PPC search is whether [url=http://www.jordanpascherofficiele.com]air jordan[/url] it can meet your goals profitably through conversions. For instance, you may be looking for sign-ups to build a mailing list. Or trying [url=http://www.mquin.com/saclancel.php]lancel pas cher[/url] to generate leads. Or selling online (e-commerce). No matter. In all cases, these goals are about converting visitors into prospects [url=http://www.thehygienerevolution.com/barbourparis.php]barbour[/url] or customers.
So, the decision to use a PPC strategy is about the value of each conversion to you. And the amount you have to spend in advertising to get [url=http://www.mquin.com/gzparis.php]giuseppe zanotti pas cher[/url] it.
THE CONVERSION RATES TO EXPECT
Although Google does this for you, here is how to work out the average cost per conversion. Divide your total costs per click (CPC) by the number of conversions. Let's say you spend $1200 on paid search clicks and you get 20 conversions.
That makes your average conversion cost $60. In short, the cost to you of each sign-up to your mailing list, or each lead generated, or each sale is $60.
Of course, it depends on the conversion rates can you expect from your keywords and ads. Unfortunately, there is no precise formula. And rates vary across industries. It also depends on the quality and nature of the offer you're making. But here are some general guidelines. Especially if you are giving something away, sign-up conversions can be very good. I've hit rates of 30% and more, but up to 10% is more realistic. Lead generation is lower, 2-4%. E-commerce can be as little as 1-2%.
Imagine you are in e-commerce. You are paying $1 per click and getting a 2% conversion rate. The outcome is that the cost of each sale is $50. Assuming your average basket or sales [url=http://bzcjrjy.gov.cn/guestbook.asp]giuseppe z[/url] value is $50 or more, you would appear at minimum to be breaking even.
THE BIG MISTAKE
But the assumption you've just made may not be accurate. Many advertisers make the big mistake of just looking at sales value. They forget that this is not their profit. Let's say the basket value is $50. But supposing your actual profit on the sale is [url=http://www.mxitcms.com/tiffany/]tiffany outlet[/url] only $20.
So, for every $100 you spend in PPC advertising, you recoup only $40. Your ppc campaign has made a loss of $30 per transaction. If you count just the profit, as you should, then at $1 CPC to breakeven you would need a basket value of $125.
Of course, these figures are generalisations, but they should prompt you to look again at your results. If it turns out you are making a [url=http://www.mnfruit.com/louboutinpascher.php]louboutin pas cher[/url] loss, [url=http://www.mnfruit.com/doudounemoncler.php]moncler[/url] don't panic and quit using ppc.
THE SOLUTION
It's likely that you could perform a lot better. Partly [url=http://www.louboumaterialistanyc.com]louboutin pas cher[/url] because thinking your results were OK created a sense of complacency and this allowed your campaigns to drift.
So, take a fresh look at your whole approach to your pay per click. If [url=http://www.gotprintsigns.com/abercrombiepascher/‎]abercrombie soldes[/url] necessary, revise ppc strategy. If you've been using a management company consider [url=http://www.mnfruit.com/airjordan.php]jordan[/url] firing them. Because a good professional would have brought this matter to your attention from the outset.
With good PPC management, ongoing optimisation [url=http://sy.91.com/android/yxgl/20130731_1515.html]boots ugg pas cher Are There Any Glucosamine Side[/url] and improving the quality score on your keywords and ads, you could cut your CPC and improve conversion rates. And perhaps then turn your paid search into real profit.
Tom Wilson is an expert in Internet marketing. He specializes in PPC services and [url=http://www.ilyav.com/uggsoldes.php]boots ugg pas cher[/url] has been providing marketing services and consultancy for almost 10 years. He is a Chartered Marketer, and a Google AdWords qualified professional. His website offers SEO and PPC services. These include ppc management, and AdWords training courses.