Monitoring Pay Per Click Effectiveness
Having the ability to track your pay per click ROI is essential for running an effective advertising campaign. Many advertisers track click-through-rate or conversions to determine a campaign’s effectiveness. While these numbers do assist advertisers in determining which ad groups have the highest performance, there is still a missing link in determining which advertising outlets provide the highest return for overall spend.
For example, we have seen that Ask sponsored listings tends to generate fewer clicks and a lower amount of conversion than that of Google. To an advertiser, it may appear that Google is the better performing advertising network because it generates more traffic and sales. However, traffic and sales do not necessarily indicate a better overall performance. Ask sponsored listings can generate a large amount of traffic at a lower cost per click. When comparing the overall advertising cost to the average conversion and sales amount, the ROI for Ask can actually prove to greater than that of Google.
Keep in mind that this is only an example. A well-optimized Google AdWords campaign can certainly outperfrom Ask and other search networks. The point is that a campaign with a large amount of traffic and sales does not always indicate high profitability.
For those advertisers wanting to track their ROI, here is a helpful tool from SEOMatric LLC. This PPC ROI Calculator, allows advertisers to enter their total monthly clicks, the average cost per click, the conversion rate, and average buyer purchase amount to reveal an estimated ROI on thier advertising spend. Advertising effectiveness does not need to be a guessing game. This and other ROI calculator tools can help you optimize your advertising spend to get a better Return on Your Investment.
Erica Scharringhausen is a Pay Per Click Account Manager for The Net Impact Web Design St. Louis Firm.