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Adwords Budget?

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Subject:  Adwords Budget?
Author:   Alistairr:   view profile | all posts by this author | add to favourites
Date:   19:11:01 1 June 2007
 
Thanks for this. We have been working on both adwords and referrals since we posted the question and there has been a marked improvement.  We installed the adwords/analytics combo which has made it much easier to analyse the traffic. I think we still need further data, but it's definitely going in the right direction!

On 16:47:38 1 June 2007 SamIneson1 wrote:

 

A website selling gifts will typically have a visitor to sale conversion rate of between 1% and 2%. Based on the assumption that your site performs well, with an average conversion rate of 2%, and here I'm making another guess.... that your average cost-per-click is about 30p, your daily spend of £5 will generate 16 visitors. At a 2% conversion rate and a daily spend of £5, I would expect your campaign to generate less than one sale per day - in fact, one sale every three days. Can your business sustain itself at this rate of sales?

You need to work out how many sales you need per day to support the business, and work backwards to define what your daily campaign budget should be. Then test the campaign with tracking code to find out what your actual conversion rate is. If you get above 2% you should be very pleased with yourself!

 

 

 
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  • Adwords Budget?, Alistairr, 20 May 11:16
    Hi there, I launched a new anniversary gift website a few weeks ago and have been using Adwords to advertise online. I'm still learning, but my campaigns seem to be going pr ...
    • Adwords Budget?, DenisK, 20 May 23:13
      Al, what makes you feel that you might not be reaching a wide enough audience?  Is it something specific, or is it purely your budget on the PPC campaing? I do not believe th ...
      • Adwords Budget?, Wynyard, 21 May 08:46
        Hi - the way I would suggest approaching this is to work backwards from your business targets. How much do you want to sell? How much can you afford to pay for each new customer (C ...
        • Adwords Budget?, StevePratley, 21 May 10:49
          Hi Alistairr, How have you reached your £5 per day? If you have set a maximum cost per-click and that's all you are getting, then you will need to either broaden your list o ...
          • Adwords Budget?, jsharpe, 21 May 11:29
            In most cases a small increase each time to expand your advertisement time is the safe option, your £5 a day as mentioned could also only be covering limited hours and maybe not th ...
      • Adwords Budget?, Alistairr, 21 May 20:28
        Thanks for your feedback. We are experimenting at present so it's difficult to get a fix on which direction to go in. We will substantially hike up the budget over the next few wee ...
        • Adwords Budget?, Alistairr, 21 May 20:40
          Apologies for the slim message above - just getting the hang of this thread. Seriously, thanks for the advice though. I'm definitely going to investigate adwords conversion t ...
          • Adwords Budget?, StevePratley, 22 May 11:10
            I'd definitely recommend you set up Google Analytics which you'll get free alongside your adwords account Very good for seeing which keywords are converting into sales, and at w ...
    • Adwords Budget?, SamIneson1, 1 Jun 16:47
      A website selling gifts will typically have a visitor to sale conversion rate of between 1% and 2%. Based on the assumption that your site performs well, with an average conversion ...
      • Adwords Budget?, Alistairr, 1 Jun 19:11
        Thanks for this. We have been working on both adwords and referrals since we posted the question and there has been a marked improvement.  We installed the adwords/analytics combo ...
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