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A presentation on determining if PPC is right for your company, how to calculate a Cost Per Action and how to improve the ROI of your PPC Campaign. Check out Trada Reviews here: http://www.trada.com/trada-reviews/

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  • 1.ROI of Paid Search
    by Trada
    Hashtag is #ROIofPPC

2. Intro
Is PPC Right for Your Company?
Benefits of PPC
Calculating Your CPA
Achieving Better ROI
About Trada
Hashtag is #ROIofPPC
3. Meet Mike Ramsburg & Elaine Ellis
Mike Ramsburg
Trada
Agency Program Manager
http://www.trada.com
Elaine Ellis
Trada
Social Media/Marketing Manager
http://www.trada.com
4. Is PPC Right For Your Company?
5. Is PPC Right For Your Company?
Two basic ways people end up making money with their websites. They sell something or they get a lead who eventually they can sell something to.
6. E-Commerce
When people search for a product your selling, having a PPC ad will ensure buyers find you.
E-commerce sites are the most frequent users of search engine marketing.
Ingredients for Success:
-Need a comprehensive keyword list for each product
-Implement conversion tracking
-Need proper landing pages
-Manage inventory against ads running
-Offer guarantees or special offers
7. Lead Generation
Using paid search for lead generation helps you find sales prospects who are interested in your service or product.
Ingredients for Success:
-Need a comprehensive keyword list for each product or service
-Implement conversion tracking
-Need proper landing pages
-Strong lead generation form
-Offer an incentive
-Make it easy to contact you
8. Branding
Branding campaigns are for people looking for traffic without a specific call to action for visitors to take. Its lacks the measurability of lead generation and e-commerce.
Ingredients for Success:
-Use local targeting if applicable
-Bid on your company and brand names
-Create landing pages where appropriate
9. Benefits of PPC
10. Measurable
Paid search is measurable from start to finish. Advertisers can track what keywords are being searched, clicks and if a buyer purchased a product from the click.
Impressions: Each time the ad is viewed.
Cost-Per-Click: The cost for each click generated.
CPA: The cost per action how much does it cost to get someone to take an action
11. Traffic
A well executed PPC campaign sends targeted traffic to your site.
Plus, sites that rank both high in Paid and Organic results receive more clicks.
12. Brand Recognition
Increased impressions with paid search results. If they see your ad even if they dont click, they have increased awareness of your company.
However, a word of caution: Having ads with high impressions and a low CTR will result in a decreased Google Quality Score.
13. 24/7 Advertising
Paid search ads start running immediately and continue to run 24/7.Potential buyers or customers will always be able to find you.
14. Precision
PPC advertising has advanced controls:
Dayparting: You can choose to have your ads run only at certain times during the day.
Geolocation: You can target your ads to run in certain locations only.
15. Calculating Your CPA
16. Show Me The Money
So how much can you afford to spend?
Lets figure out your Cost Per Action (CPA.) This is where an advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.
17. Conversion Tracking
How it Works:Conversion tracking places code onto your site. Once the code is applied, conversion tracking places a cookie on a user's computer when he or she clicks on one of your ads. Then, if the user reaches one of your conversion pages, the cookie connects to your web page and conversion tracking records a successful conversion for you.
18. Calculating Your Target CPA
Determine Your Conversion Rate
Calculate Your Gross Profit
Calculate Your Target CPA
Calculate Your Net Profit
Determine Maximum CPC
19. Figure Out Your Conversion Rate
Conversions / Site Visits = Conversion Rate

If a site received 4,000 site visits in a month, and generated 80 conversions, the conversion rate would be 2%.

80 / 4,000 = .02
20. Calculate Your Gross Profit
Sales Price Cost of Product = Gross Profit of Product

So if your sales price is $125 and your cost to build the product is $65 then your gross profit is $60.

$125 - $65 = $60
21. Calculate Your Target CPA
Sales Price * Sales & Marketing Cost % = Target CPA

So if youre sales price is $125 and your sales and marketing margin percentage is 15%, your target CPA, including promotional costs, is $18.75.

$125 * .15 = $18.75
22. Calculate Your Net Profit
Gross Profit Target CPA = Net Profit

So if your gross profit is $60 and you subtract your target CPA of $18.75 then your net profit is $41.25.

$60 - $18.75 = $41.25
23. Determine Maximum CPC
100/(100 * Conversion Rate %) = Required clicks to generate a conversion

So if the conversion rate is 2%, then youll need 50 clicks to get a conversion.

100/(100 * .02) = 50

To calculate the maximum average cost per click your campaign can have, take your target CPA and divide it by your required clicks.

Target CPA/Required Clicks = Max Avg CPC
24. Budget
25. Custom Budgeting
Every business has a different budget and needs. PPC advertising allows you to specify how much you want to spend on any given day or month. Custom budgets tailored just for your business.
26. Fixed and Self-Funding Budgets
A fixed budget establishes a fixed amount you spend on PPC.
A self-funding budget is based on your ability to fund your PPC campaign by meeting specified sales goals.
27. Achieving Better ROI
28. The Brakes in PPC
What to do when your campaign isnt working:
Keep an Eye on Costs
Not All Clicks Are Equal
Know When to Stop Spending
A/B Test
29. Watch Your Google Quality Score
-The historicalclickthrough rate (CTR) of the keyword and the matched ad
-CTR of all the ads and keywords in your account
-The historical CTR of the display URLs in the ad group
-The quality of the landing page
-The relevance of the keyword to the ads in its ad group
-The relevance of the keyword and the matched ad to the search query
-Your account's performance in the geographical region where the ad will be shown
The higher your Quality Score, the lower your costs and the better your ad position.
30. Investigate Long-Tail Keywords
Long-tail keywords are three or more words.
Traffic from long-tail keywords convert at a higher rate, and have a lower CPC, since demand for the keyword is lower.
31. Good PPC = Good ROI
Chances are, the better your PPC, the better are your ROI. Keep these tips in mind.
Analyze the Data
Use Negative Keywords
Exact Match Over Broad Match
32. A Few Words on Trada
33. What is Trada?
Trada is the first (only) paid-search marketplace where agencies and direct advertisers can leverage the expertise of hundreds of skilled PPC experts, who work collaboratively and competitively to build and optimize sophisticated PPC campaigns. Everyone works on a pay-for-performance system earning money by generating low-cost clicks and conversions for advertisers.
34. Join Trada As an Expert
-Earn money risk free, working when you want and where you want
-You dont have to find or manage your own clients
-Choose the types of campaigns you want to work on.
-Join a community of PPC experts
35. Where to Find Us
Trada.com Trada.com/blog @Trada
36. Trada will send a copy of the presentation and a recorded webinar this week
37. Specific Questions?
Elaine Ellis
Marketing Manager
Email me at eellis@trada.com
www.trada.com
Bill Adkins
VP of Sales
Email me at badkins@trada.com
www.trada.com
http://trada.com http://trada.com/blog @trada