Friday, 15 March 2013

Clicks to Convert

Looking back over my last post I think it is easier to conceptualise by using a new stat "clicks to convert". 

So lets take a practical example I have a client who has a keyword that has 567 clicks with 9 conversions. so:-

567 / 9 = 63

So every 63 clicks will result in one conversion, lets say the target is £5 CPA so:-

5.00 / 63 = 0.079

So in this case the max bid to achieve a £5 CPA would be £0.08!

Wednesday, 6 March 2013

Max CPC Thoughts

Its Worth What it is Worth

Over the years I have tried numerous optimisation strategies for Adwords Pay Per Click, in essence it should be simple and I'm going to take a simple strategy that I'm currently using on an account.

I have an account that has a target CPA of £10. So lets say the term 'widgets' converts at 0.3%.

So Max CPC = Conv Rate X CPA

Therefore in this case 0.03 (Conversion Rate) X 10 (Cost per Acquisition) = 0.33, (33p Max Cost Per Click).

It is not as simple as that of course you might find a term converts better in a lower position but at the very least you have a hard cap on the maximum bid.

I'm currently on working this into my Bidding Software System although you can use the Rules within Adwords itself, see screenshot below.