How long should i let my adword campaigns to run?

evo2007 · 08-10-2007, 04:15 AM

I have about 8 Adword campaigns running, but there hasn't been any resposnse from 5 of them, each five have had maybe around 100 clicks, but no purchases. How long more should i wait before i count the campaign unsuccessful?

Adam Bauthues · 08-10-2007, 11:33 AM

You really should know and be able to calculate what your maximum CPC (cost pr click) should be. You can do that with the following formula.

Average Commission Rate X Conversion Rate = Your Max Bid

So, if you are selling a product that has a constant commission rate, say for every sale you make $20 and you assume a 2-3% conversion rate (you should assume this for all purchases on Adwords in the beginning) here would be your formula...

$20 X .03 = .60

According to this model, for every 100 clicks you make 3 sales for a total of $60. This means that your maximum bid per click should be no more than 60 cents to break even.

Always use a formula like this or something similar to help you make decisions. It will ave you a lot of money on Adwords.

08-10-2007, 04:15 AM	#1 (permalink)
evo2007 Noogle Join Date: Jul 2007 Posts: 5 Thanks: 0 Thanked 0 Times in 0 Posts	How long should i let my adword campaigns to run? I have about 8 Adword campaigns running, but there hasn't been any resposnse from 5 of them, each five have had maybe around 100 clicks, but no purchases. How long more should i wait before i count the campaign unsuccessful?

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08-10-2007, 11:33 AM	#2 (permalink)
Adam Bauthues Noogle Join Date: Aug 2007 Posts: 5 Thanks: 0 Thanked 0 Times in 0 Posts	You really should know and be able to calculate what your maximum CPC (cost pr click) should be. You can do that with the following formula. Average Commission Rate X Conversion Rate = Your Max Bid So, if you are selling a product that has a constant commission rate, say for every sale you make $20 and you assume a 2-3% conversion rate (you should assume this for all purchases on Adwords in the beginning) here would be your formula... $20 X .03 = .60 According to this model, for every 100 clicks you make 3 sales for a total of $60. This means that your maximum bid per click should be no more than 60 cents to break even. Always use a formula like this or something similar to help you make decisions. It will ave you a lot of money on Adwords.

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