Overture Budget

What's the cost of getting first page results?

[Shabba]

This question will reveal my ignorance, but here goes anyway....I want to try and come up with a rough guess-timate of a marketing budget for a set of keywords...the Overture tool allows me to see what the monthly traffic for that keyword was for a certain month (say, March) and I can see what kind of a price it takes to be in the top 5...does the traffic estimate pertain to just the traffic coming thru Overture or does it include all the clicks coming in from revenue-sharing partners like MSN etc? And if you then make a wild assumption about the percentage of this traffic which goes to the top 5 results, can you then get an idea of how much you're likely to spend? EG: If the word tends to go for $1- $2 and the traffic count is around 50,000 per month...If you manage to consistently be in the top 5, how much are you paying for this priviledge? Perhaps I'm scared to see the answer! :)

[Shabba]

hmmm...perhaps i should've posted this in "Keyword Discussion"...?

[Travoli]

Hi Shabba

Yes, the numbers do include the traffic partners.

When I make a budget, I just multiply # searches by #1 position. At my work, it is always better to ask for more and then come in "under budget".

The reality has been that we pay less than budgeted, but when Overture adds a partner it takes away part of our $$ cushion.

[Shabba]

Jiminy Cricket! So on a crazy term like "Online Casino" where sites are paying $19.87 and the traffic is up around 600,000 per month...? That's insane...surely you can't assume that #1 site is getting all the traffic? Well...I suppose even they're getting 25% of the traffic, it's still huge.
I was actually looking more at a term like "Online Trading" for day-trading/ stcok brokers etc...a relatively cheap $2.50 with around 25,000 per month traffic.
Thanks for your response.

[Mardi_Gras]

Shabba - in my (limited :)) experience, a 25% click-thru rate would be phenomenal. Somewhere between 5% and 15% would be more likely.

Travoli - do you apply a "guestimated" click-thru percentage to that formula?

I just multiply # searches by #1 position

If so, what %?

[Travoli]

Looking back at some actual numbers, I got 20% of total searches come to my site from a general 2 word term sitting at the #1 spot. Specific keyword phrases can be closer to 25%.

I should have clarified my last post. The point about budgeting was, I always go very high. The top bids in my market increase monthly. My current budget plan must also work months down the road. With new partners coming on and new traffic at higher bid rates, I am already covered.

Budgeting high is basically a way to allow for growth. It is always harder to ask for more money. I spin the budget in order that I look good when I spend less than budgeted, and I can grow my listings as necessary.

[Mardi_Gras]

Specific keyword phrases can be closer to 25%.

That's great. I guess I'll need to ask you for help on my descriptions! :)

Don

[Shabba]

Two implications here for SEO...both good I think...one, it means that as a site-owner you have to play the Overture game if you want to be in the top results at Overture, MSN, AOL, Yahoo, Lycos, etc....which means that you need SEO help in determining what keywords to use, and help in managing your account, which PPC's to bid in, how to manage bidding wars etc....but you also need "traditional" SEO help in terms of getting your site up to snuff so that it ranks well in the non-Overture world ie Google....somebody just e-mailed me and told me that SEO for "free" engines is going crazy and that he's getting inquiries constantly.... :)

[keywordbuys]

It's so hard to determine what people pay per month, I for one pay over 200 dollars a month at Overture, but it's worth it.

Findwhat I pay about $100.00 a month, ROI is a little low but I believe it will be worth it soon.

[Birdman]

Does anyone know what an average sales rate per click could be expected assuming you had a well designed site and prices were reasonable.

[Birdman]

What IO meant to say was, what would a worst case scenario ROI be for a site selling product in the $10 to $200 range. I am seriously considering PPC at Overture and just wanted to get a general idea of what to expect.