by rms1
8 replies
  • SEO
  • |
I have a simple equation why I think Google adwords does not work for me but I would love for someone to tell me I am wrong and for me to be able to set up a campaign where PPC can make me money.

We are a well established business selling our own home produced CDs/Downloads. Because of the nature of the content, we don't very often get repeat business. That is not because there is anything wrong with the product, it's merely because there would be no need to purchase again, although we do get recommendations.

My equation is that: (numbers in UK pounds)

1. The average sale for my product is £9.00
2. The average cost per click for what are fairly competitive keywords is around 90p.
2. Let's assume that the average conversion rate for our product is around 3%

So, every 100 clicks would cost me around £90 and my return for 3 sales would be £27 therefore I would take a loss of £63.

Is there a way that PPC could work for me and am I missing a solution?

Any advise would be appreciated.
#ppc #work
  • Profile picture of the author mathaios
    Originally Posted by rms1 View Post

    I have a simple equation why I think Google adwords does not work for me but I would love for someone to tell me I am wrong and for me to be able to set up a campaign where PPC can make me money.

    We are a well established business selling our own home produced CDs/Downloads. Because of the nature of the content, we don't very often get repeat business. That is not because there is anything wrong with the product, it's merely because there would be no need to purchase again, although we do get recommendations.

    My equation is that: (numbers in UK pounds)

    1. The average sale for my product is £9.00
    2. The average cost per click for what are fairly competitive keywords is around 90p.
    2. Let's assume that the average conversion rate for our product is around 3%

    So, every 100 clicks would cost me around £90 and my return for 3 sales would be £27 therefore I would take a loss of £63.

    Is there a way that PPC could work for me and am I missing a solution?

    Any advise would be appreciated.

    Make your cost per click 0,01.If you manage it, then for 100 clicks you will pay only 1pound and with a conversion rate at 3% you `ll definitely be profitable.
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    • Profile picture of the author JohnTimmins
      Yeah. That's what I am thinking also. Thanks for sharing...
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  • Profile picture of the author ppcmanager
    You can try Display Network to see if relevant yet cheaper clicks can be generated. Also, since the average order value is rather low, you might try contacting other people in your niche who have a relevant list to send mailers.

    Organic/Free sources of traffic looks like the best option in this case though - like social media, seo etc.
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    • Profile picture of the author David Neale
      Are you using conversion tracking to know which keywords and ads are resulting in sales? Are you only using a shopping cart or phone orders also?
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      David Neale

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      • Profile picture of the author dburk
        Hi rms1,

        Your reasoning is flawed.

        Your average AdWords profit of "you" and Google together is actually about $34 million per minute.

        See what I mean? While that statement is technically accurate, when you use "averages", it doesn't tell the truth about your personal individual experience, does it?

        As Tim Ash likes to say "averages lie".

        Looking at the "average" performance of any metric is only useful to evaluate your overall performance. It can tell you if "your" overall strategy has worked it doesn't tell you much of anything useful about your campaigns beyond just that. It doesn't tell you if AdWords will work for you or not, it just indicates that you are not looking at the right metrics, and you will likely never succeed until you start actively managing your campaign using proper marketing principles.

        A key principle of sound marketing is the proper use of market segmentation. In AdWords, your marketing strategy should center around keyword segmentation. Just as you have had a personal individual experience in profits that is very different from the average profits of "you and Google" together, each of your keyword segments will likewise have their own individual story of performance. Within those keyword segments you may find some true top performers that are hidden by averages that include terrible performers.

        If you get this concept, then congratulations, you have just completed the first step in learning how to manage a successful AdWords campaign. You are making progress, get busy and pickup the pace, as profits are just around the (learning) bend.

        Not all keywords will have the exact same "average" CPC, and not all clicks, for the same keyword, will have the same cost. Segmentation is your friend, she's a lot of hard work, but good for you in the end, she makes you into a better marketer.
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  • Profile picture of the author svetod
    I've said this many times - Adwords is not a mystery, it can be conquered! PPC and especially Adwords are Bing are huge possibilities to make big money and everyone can make it work if they spend some time learning the basics and how to optimise campaigns.

    I will be happy to help if you have any questions.
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  • Profile picture of the author patco
    With a click for 90p there is NO reason to even start doing PPC... We do PPC when we will have about 200% profit... I would go with a different PPC project (like Facebook ads!). Just be sure to choose the RIGHT audience and grab people's attention by writing a really NICE and eye-catching title!!!
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  • Profile picture of the author johnben1444
    PPC is not for every kind of business.

    You might want to consider raising your price or offer other collective items to help the price soar.

    Another option is to send the traffic to a site with opt in page and follow up with email campaign.

    It's usually more effective that way.
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