How can I maximize my Adwords profits?
- PPC/SEM |
I am looking for some KPIs or formulas that could help me to maximize the profits of my Adwords campaigns.
Following my scenario:
I have an 'unlimited' budget, no specific ROI target, decent potential for growth (currently ranking on positions 4-5) and have a score of various performance stats from the last 4 years.
The only goal I have is to generate as much profit as possible with the campaigns.
Theoretically my cost-of-sale ratio decreases with increased invest. However, revenue also increases so that I am making overall more profits..
The amount of data I have might provide a cost function that gives me insights at which combination of invest and CoS I could yield the highest profits for my specific Adwords setup.
If needed I also thought that the traffic estimator could provide some further information on my performance on the higher positions to get a better idea of the performance elasticity and marginal costs.
Problem is that I have no specific idea how to calculate this and I am not sure if it makes sense at all to calculate this in Adwords due to the amount of external factors that might influence the performance.
But in the end I am just looking for a ballpark figure like x invest for x% CoS should give your Adwords account the highest yield.
Does anyone have an idea how I could calculate this? Or knows a good reference?
I have been struggling with this question for years. So it would be great if we could work something out here in this forum!
Cheers,
Ben
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* Don Burk Advertising & Marketing - www.donburk.com