by Miky M
1 replies
  • PPC/SEM
  • |
Hello wariors, it's Miky again.
i have been running bingads for some days now and i love it though no sales yet, but bing has been giving me a lot of updates and recommendations,

so i was wondering if i should take action on them, for example they are telling me to set bid for 25 keywords selected to rank on the first page for low click through cost and guaranteed 68 clicks a week, but each of this selected keywords will cost at some-point from $0.20-0.93.

anyone running bing ads? please i will appreciate your helpful comments

Thanks
#ads #bing
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  • Profile picture of the author dave_hermansen
    As with all pay per click campaigns, you need to first figure out what the maximum cost per click is that you can afford.

    First, you need to figure out what your average profit per sale is (not the average profit per item but the entire order). You don't want to spend more for clicks than your profit is. For our example, we will assume your average profit is $40 per sale.

    Next, you need to know what your average conversion rate is. If 1 out of every 50 unique visitors purchase, that is a 2% conversion rate. Multiply your average profit per sale by that. In our example, $40 times .02 = 80 cents.

    So, the absolute most you can spend on a click is 80 cents and that is making ZERO profit. Obviously, you're not in business to make zero, so you'll want to spend less than that. How much less depends on what you think your time is worth (processing orders, doing customer service, sending tracking numbers, etc). If you want to keep $20 in your pocket of the $40 profit, you can only afford to spend 40 cents per click.
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