To properly calculate your AdWords campaign budget, you first need to understand how Google pays itself for its advertising campaigns. Simple, because in essence you will pay at "cost per click" (CPC): each time an Internet user clicks on your sponsored link, you will pay a certain amount to Uncle Google. But complex, too, because this amount is determined in advance by an auction system.....
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You expect something in return from every penny you spend, right? And there's absolutely nothing wrong with that! This just shows your business acumen.
In fact, when it comes to PPC campaigns, calculating the return on your investment is important. Otherwise, your just burning your money. So, what are the metrics you should track to get the best ROI from your PPC campaigns? Here are a few.
- Clicks
- Impressions = total cost X 1000 / CPM
- Cost per click = Total cost / number of clicks
- Click through rate = Clicks / impressions
- Quality score - the number that Google gives based on the CTR of your chosen keyword
- Impression share = number of searches performed for the keyword / number of times your ad was shown
- Conversion rate = number of people who took action / number of people who clicked on the ad
Automated Adwords
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Some Statistics
Marketers exhaust 51 % of their money into mobile ads.
Google holds 37.2 % of online marketing market, whereas Facebook gets 19.6 %.
The top 3 paid advertising spots get 46 % of the visits.