The £3k Ive spent has equated to around £4k in sales. The main beneficiary has been Google. Sure, Ive gained some exposure and a few sales, and haven't actually lost money, so I shouldn't really complain - right?
Well, my CTR has been around 2% for my main target terms. Add to that the time spent monitoring and tweaking things, and you can begin to appreciate my view that it isn't exactly great.
Average profit per sale is around $8-00 Im reluctant to up the ante too far, as this may impact upon an already stretched profit margin. 1 sale per 40 clicks a@ 20 cents is infitely better than 1 sale per 40 clicks @ $1.50!
I realise it depends on other conversion factors and market sectors, but generally speaking, has anyone had any experience with seeing a substantial rise in sales, after raising their minimum cpc from say 20 cents to $1.50 or beyond?
The traffic estimator is always advising that I up my daily budget to $80, but then again, it would, wouldnt it?
I'd quite glady spend $80 or even $800 per day provided such spending levels gave a ROI.
TIA if you can offer any suggestions/experiences
In either case you can work out a ROI based on click through and profit per visitor. Raising CPC would increase your number of visitors but its unlikely to effect your conversion rate. So with a higher CPC you would start losing cash.
I would be tempted to do some SEO with the £3k, returns can be far higher.
Smiley
That's the difference between us guys shipping real stuff (and paying our hard earned $$$ to fellow helpers like UPS and Visa), and the people selling content/software...
It's good to see your experience onionrep, I am still in the phase of putting some stable ads together, and keep them online. Next thing will be tweaking the ROI and conversion rate...
I actually made 1k profit on a 3k outlay eg commissions generated were 4k. So, 4k minus the 3k (adwords spend)= 1k overall profit.
Actual sales were close to 90k.
Profit is determined by commission levels from affiliate sales.
