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Adwords ROI Question?

by deaddogdesign
4 replies
  • SEO
    • |
Just hired a PPC managing company today and was wanting to know what kind of conversion rate I can accept for my adwords campaign. Do you think 3-4% is a realistic number assuming you have a well put together landing page?

Could you let me know what your averages so I can have an estimate of what my ROI will look like?
#adwords #question #roi
  • Profile picture of the author dburk
    Hi deaddogdesign,

    Your conversion rate will vary a great deal from one keyword to another, and from one landing page to another. For an typical eCommerce website, 3-4% might be acceptable for a competitive niche.

    Bear in mind that your PPC management company probably did not design your landing pages. What is important is that your PPC management company works at improving your conversion rate, and even more important is that they improve your total profits. Use total profit as your primary metric, all other metrics are mainly used to provide insight into ways of improving the main objective, which is total profit.
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    * Get Results - Outsource Your PPC Management |
    *     Don Burk Advertising & Marketing - www.donburk.com

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  • Profile picture of the author deaddogdesign
    Hey Don,

    Ok, Yes they didn't design my landing page. I did it myself along with an email opt-in along with great content that I believe will have conversions of 5% or more. My business model for this site is PPC to sell affiliate commissions. Thanks, I will keep an eye on my primary metric and look to improve it every month.
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    DEAD DOG DESIGN
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    • Profile picture of the author movemaker
      One metric that you want to get down is how your CPA...Cost Per Acquisition.

      You need to know how much is it going to cost you to acquire a customer. Once you know how much its costing you to get a customer you can then have a better idea on how you can optimize your camp.

      Once you fig out how much its going to cost you to get a customer. Then figure out how to decrease your CPC. Since your using AdWords try increasing your quality score. As you increase your QS your CPC "should" decrease as well.

      Then measure your EPC. If you can get your EPC higher than your CPC you are on your way to good profits...

      This is just a rough draft but it should give you an idea. Let me know how it goes as I am currently running on AdWords as well.
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  • Profile picture of the author Tiiberiuss
    From my personal experience 4% good ROI. It basically means you would make 4 sales every 100 clicks. If 4 sales generates more money than 100 clicks cost and you are content with that there's no need to change anything
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