What Is A Good ROI With PPC?

[Toby.T]

Hi,

Currently pulling an average of +27 percent, eg. Spend 1000, Revenue 1270, Profit 270.

Is this considered good? Or should I push a lot harder to improve this?

Spend about 50 a day at this point, will ramp up more if this actually worth it.

Profit's profit right?

[dburk]

Hi Toby,

The ROI will vary greatly for each keyword, ad, landing page, and bidding strategy. You shouldn't be concerned with maximizing ROI, that's the wrong metric for optimizing PPC campaigns. Maximizing profit per month is a much better metric.

A minimum ROI is sometimes established to allow for working capital restrictions, especially with products or services that have a long lead time, or long sales cycle. In those cases there may be substantial operational expenses which increase the cost of financing your marketing efforts. However, in many cases you should not be concerned with the ROI metric.

You should establish an average value per sale for each product/service you are marketing, then focus on maximizing total profit per day/week/month. You do this by a process of continuous testing and optimizing of your ads, landing pages and bid levels for each individual keyword.

The actual strategies and techniques for optimizing each of the above process could fill volumes of books. While many PPC marketers have been successful with relatively minimal knowledge of the those processes, it is becoming more difficult each day due to the competitive nature of auction based ad positions.

[zoobie]

I will reckon 1%

[nicktyler]

It depends on many things as dburk says. Also it depends on the size of your operation and the product and industry you are in. I would normally go for about 15% cost of sale so if you spend 15 you make 100.

I don't know anything about your buisness but there is almost allways room for improvement. Nothing is perfect and all that so you should try and improve on a 27% ROI