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Pay for Click Optimization Tips

Critical Metrics and Steps to Maximize Pay Per Click Campaigns

Jose Ward - Monday, August 04, 2008
Every month, millions of Internet users in the United States and around the world get to view Google AdWords ads. Google AdWords is Google's advertising program. AdWords lets online businesses create simple, effective ads and display them to people already searching for information. The consensus among Internet marketing specialist and Google fans is that AdWords are very cost-effective. Yet most business people don't know how to maximize the Return on Investment (ROI) of a Google Pay Per Click campaign?
You can determine which keywords actually convert to calls to action on your site and you know the value of those calls to actions, you can determine the Pay Per Click campaign ROI for those keywords. The key metric's business owners need to focus on to help them determine the converting keywords for your desired call to action are the following:
  1. Cost per visitor (cost per click)
  2. Cost per prospect (cost of an opt-in to your newsletter or filling out a contact us form)
  3. Cost per customer (the cost of an order)
  4. Value per visitor (the value of an order divided by the number of visitors it takes to get the order).
So here is how we recommend you start:
  1. Set your goal:  How much money ($) do you want to invest to determine the converting keywords for your site?  We generally recommend 2,000-3,000 clicks to get statistically relevant results.
  2. Select your Keywords:  At least a list of 50 keywords...or more.
  3. Set up your individual keyword tracking:  Google's Keyword Tool is free but has a limitation of only allowing you to track one call to action.  There are better 3rd Party tools that we bring to our clients.
  4. Set up your bids: Use Microsoft Excel spreadsheet with the following columns; Keyword,Google title, Google description.
  5. Setup Google Adwords: start at .05 per click go to
  6. Measure traffic and individual keyword conversion:  Adjust your bids upwards in order to gain your desired position and click through
  7. Optimize your click through:  We always setup and run several ads side by side to see which title and description give us the highest % click through rate.
  8. Optimizing your bids for converting keywords:  Once you know your converting keywords, you can optimize your bid position by changing your bid price to see if a higher or lower position gives you a higher conversion or more traffic or both.

Use this Critical information so that you know the percent of revenue you should be comfortable investing to acquire a new customer!

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