Is there a formula to optimize CPA + PPC campaigns?

taskemann · 10-08-2011, 04:36 AM

Hi! I'm wondering if it's any formula to optimize CPA + PPC campaigns?

For example:

How much Should I bid on my keywords to earn money quickly, at the same time as I get the highest net profit results?

Because if I placed the lowest bids on the keywords, I will not get the clicks as fast as when I bid high on the keywords.

There must exist a formula that lets me find out the best balance between investments in PPC and profit from CPA.

Do you have any suggestions?

Regards,

Jimmy

Mahmoud Selman · 10-08-2011, 06:23 AM

Hello Jimmy,

The best you can do is test and tracking, You will need to place your bids high at the beginning to get more clicks and to track your converted keywords same time.

It will cost you money to find your winner keywords, but once you have found them you can remove the none converting keywords and cut the cost for your PPC by keeping the converting keywords only.

From there you can optimize your campaigns and get lower cost per click.

Hope that helps.

PPC-Coach · 10-08-2011, 07:56 AM

There's a couple formulas, you need to figure out your target ROI, your maximum spend per keyword and your estimated conversion rate. Then you can figure out exactly how much to spend on each keyword in testing.

Some guys just jump in and spend 10 times more then the payout of the offer per keyword, but I find that a bit odd. You'd never pay $10 to make $1 would you?

taskemann · 10-08-2011, 08:10 AM

Quote:

Originally Posted by PPC-Coach

There's a couple formulas, you need to figure out your target ROI, your maximum spend per keyword and your estimated conversion rate. Then you can figure out exactly how much to spend on each keyword in testing.

Some guys just jump in and spend 10 times more then the payout of the offer per keyword, but I find that a bit odd. You'd never pay $10 to make $1 would you?

No i wouldn't

I'm testing this out now. I'm promoting four different CPA lead offers from Peerfly. My testing budget is on $25.00 with keyword bids on $0.05.

The avarege EPC from these four offers is on $3.085 and the avarege conversion rate is on 12%.

So I hope this will result in profit. If not, I'm doing something REALLY wrong.

taskemann · 10-08-2011, 08:15 AM

I have noticed that some affiliates are making their own landing pages for the CPA offer they are promoting trough PPC campagns. Why are they doing this? Why don't they just link directly to the CPA offer with their affiliate link?

ChrisBa · 10-08-2011, 08:59 AM

Quote:

Originally Posted by taskemann

I have noticed that some affiliates are making their own landing pages for the CPA offer they are promoting trough PPC campagns. Why are they doing this? Why don't they just link directly to the CPA offer with their affiliate link?

With a landing page you control the traffic flow better and you can pre-sell, often PPC only allows a very small ad, you can't fit much information in, with a landing page you can use the PPC ad to get them to visit the landing page, then use the landing page to pre-sell them on what you are trying to pitch them..

Rageki · 10-08-2011, 09:00 AM

Quote:

Originally Posted by PPC-Coach

There's a couple formulas, you need to figure out your target ROI, your maximum spend per keyword and your estimated conversion rate. Then you can figure out exactly how much to spend on each keyword in testing.

Some guys just jump in and spend 10 times more then the payout of the offer per keyword, but I find that a bit odd. You'd never pay $10 to make $1 would you?

That is very odd

ChrisBa · 10-08-2011, 09:01 AM

Think of it this way.. if you are buying a car, and you search for that, you start click on some ppc ads to find out more information, are you more likely to buy going straight to a sales page? or to a page that first outlines why you NEED to buy that certain car, all the benefits are outlined, it's just as good as a salesman..

10-08-2011, 04:36 AM	#1
taskemann Jimmy Bredesen War Room Member Join Date: Jul 2011 Location: Trondheim - Norway Posts: 347 Thanks: 101 Thanked 74 Times in 53 Posts Social Networking	Is there a formula to optimize CPA + PPC campaigns? Hi! I'm wondering if it's any formula to optimize CPA + PPC campaigns? For example: How much Should I bid on my keywords to earn money quickly, at the same time as I get the highest net profit results? Because if I placed the lowest bids on the keywords, I will not get the clicks as fast as when I bid high on the keywords. There must exist a formula that lets me find out the best balance between investments in PPC and profit from CPA. Do you have any suggestions? Regards, Jimmy

10-08-2011, 06:23 AM	#2
Mahmoud Selman Selman.us War Room Member Join Date: Apr 2011 Location: Sweden Posts: 822 Thanks: 317 Thanked 273 Times in 174 Posts Social Networking	Re: Is there a formula to optimize CPA + PPC campaigns? Hello Jimmy, The best you can do is test and tracking, You will need to place your bids high at the beginning to get more clicks and to track your converted keywords same time. It will cost you money to find your winner keywords, but once you have found them you can remove the none converting keywords and cut the cost for your PPC by keeping the converting keywords only. From there you can optimize your campaigns and get lower cost per click. Hope that helps.
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10-08-2011, 07:56 AM	#3
PPC-Coach Senior Warrior Member War Room Member Join Date: Sep 2007 Location: , , . Posts: 2,547 Thanks: 44 Thanked 663 Times in 379 Posts	Re: Is there a formula to optimize CPA + PPC campaigns? There's a couple formulas, you need to figure out your target ROI, your maximum spend per keyword and your estimated conversion rate. Then you can figure out exactly how much to spend on each keyword in testing. Some guys just jump in and spend 10 times more then the payout of the offer per keyword, but I find that a bit odd. You'd never pay $10 to make $1 would you?

10-08-2011, 08:15 AM	#5
taskemann Jimmy Bredesen War Room Member Join Date: Jul 2011 Location: Trondheim - Norway Posts: 347 Thanks: 101 Thanked 74 Times in 53 Posts Social Networking	Re: Is there a formula to optimize CPA + PPC campaigns? I have noticed that some affiliates are making their own landing pages for the CPA offer they are promoting trough PPC campagns. Why are they doing this? Why don't they just link directly to the CPA offer with their affiliate link?

10-08-2011, 09:01 AM	#8
ChrisBa Senior Warrior Member Join Date: Jun 2008 Posts: 4,130 Thanks: 10 Thanked 508 Times in 402 Posts Social Networking	Re: Is there a formula to optimize CPA + PPC campaigns? Think of it this way.. if you are buying a car, and you search for that, you start click on some ppc ads to find out more information, are you more likely to buy going straight to a sales page? or to a page that first outlines why you NEED to buy that certain car, all the benefits are outlined, it's just as good as a salesman..
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