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What are you spending on a PPC campaign?

Methods & Tips for promoting your website, or affiliate programs, on the major search engines with pay-per-click advertising. Google Adwords, Overture, FindWhat, Kanoodle & more...

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What are you spending on a PPC campaign?

Postby bs28723 » Tue Nov 20, 2007 11:41 pm

I was trying to see how people make this work, So..

I put together a simple little spreadsheet that calculates the break even point for a campaign based on $/click, conversion rate, budget / day, product commisions, and number of days.

It clearly shows that you need to have a rough idea of a conversion rate (yes this is dependent on keywords, ignoring that for this discussion) and the amount you make per sale. You don't want to spend $100 on ads to make a $20 sale.

I guess another way to look at this is what % of sales should be spent on ads? (lets not talk about free, lets assume for this discussion that you have committed to ppc ads) Is it ok to spend $100 to make $400 or 25% on ads?

Just wondering what people average spending on a typical campaign for say a affiliate product or a new website? And what their typical conversion rate is? How long do you run your ads?
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Postby Lynn Terry » Wed Nov 21, 2007 3:44 pm

Great points for discussion...

If I can double my money, consistently and without too much hands-on maintenance (after initial setup), I'm generally content with that. Better is great, of course.

When calculating potential bid amounts upfront, I figure in a half percent conversion rate (1/2%) as the variable. So if my commission is $20, I have to stay at 5c per click to double my money at 1/2% conversion rate.
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