Well Im about to start an adwords campaign and I trying to find out how much is everyone else paying per click..
On a site where im selling a product with a 1% that a customer would buy a the product which costs $49.99.
Im using high volume key words and my estimated ad position is 1-3 or 4-6 (sometimes 7-11)
Would 10 Cents a click be good?
Im pretty new here... Ill take any info i can get =)
Track your income vs spend.
Crank up the bids and optimize until your income vs spend chart starts to go flat. Meaning additional investment provides no more incremental income.
But what do I know. I'm a failed arbitrager.
Good luck!
On a site where im selling a product with a 1% that a customer would buy a the product which costs $49.99.
Your break even point is $0.4999 (1% conversion X 49.99 = .4999).
Depending on what you wish your ROI/CPA/ROAS to be - you can adjust your bid accordingly (for 200% ROI, you'll want an average CPC around $0.25).
The trick is to find where you can get volume, and still make an acceptable ROI.
With a 1% conversion rate, I'd first focus on increasing that number over how much should be bid. If you can double your conversion rate, you can double your break even point, which means your can double your bids and maintain the same ROI.
[edit]Fixed Formatting[/edit]
[edited by: eWhisper at 1:52 am (utc) on Nov. 29, 2006]
Mind your fingers don't slip when setting up the Adwords bids - or a CPC of $0.25 could end up as $25!
Double check the bids then check how the ads are performing shortly after setting them up.
[edited by: Pengi at 9:40 pm (utc) on Nov. 28, 2006]
Hmm well the product im selling is a digital e-book...
My main focus is increase my Conversion rate...
That would boost my ROI and allow to bid more perhaps.
