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A presentation on determining if PPC is right for your company, how to calculate a Cost Per Action and how to improve the ROI of your PPC Campaign.

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  • It’s a no braner for e-commerce b/c they’re already looking for what your selling.
  • Easy on the lead form
  • Different type of marketing. Marketing research as you market. And which brand messages. Inform other marketing channels.
  • Cookies in placeIs your site as developed?An autoparts dealer in Minnesota with awesome tires for sale.
  • Be realistic
  • Have a detailed, well defined bid strategyUnderstand which terms are most important to your businessDaily budgetControl how much goes to the site
  • ROI of PPC

    1. 1. ROI of Paid Search<br />by Trada<br />Hashtag is #ROIofPPC<br />
    2. 2. Intro<br />Is PPC Right for Your Company?<br />Benefits of PPC<br />Calculating Your CPA<br />Achieving Better ROI<br />About Trada<br />Hashtag is #ROIofPPC<br />
    3. 3. Meet Mike Ramsburg & Elaine Ellis<br />Mike Ramsburg<br />Trada<br />Agency Program Manager<br /><br />Elaine Ellis<br />Trada<br />Social Media/Marketing Manager<br /><br />
    4. 4. Is PPC Right For Your Company? <br />
    5. 5. Is PPC Right For Your Company?<br />Two basic ways people end up making money with their websites. They sell something or they get a lead who  eventually they can sell something to. <br />
    6. 6. E-Commerce<br />When people search for a product your selling, having a PPC ad will ensure buyers find you.<br />E-commerce sites are the most frequent users of search engine marketing.<br />Ingredients for Success: <br />-Need a comprehensive keyword list for each product<br />-Implement conversion tracking<br />-Need proper landing pages<br />-Manage inventory against ads running<br />-Offer guarantees or special offers<br />
    7. 7. Lead Generation<br />Using paid search for lead generation helps you find sales prospects who are interested in your service or product.<br />Ingredients for Success: <br />-Need a comprehensive keyword list for each product or service <br />-Implement conversion tracking<br />-Need proper landing pages <br />-Strong lead generation form<br />-Offer an incentive<br />-Make it easy to contact you<br />
    8. 8. Branding<br />Branding campaigns are for people looking for traffic without a specific call to action for visitors to take. It’s lacks the measurability of lead generation and e-commerce. <br />Ingredients for Success: <br />-Use local targeting if applicable<br />-Bid on your company and brand names<br />-Create landing pages where appropriate<br />
    9. 9. Benefits of PPC <br />
    10. 10. Measurable<br />Paid search is measurable from start to finish. Advertisers can track what keywords are being searched, clicks and if a buyer purchased a product from the click.<br />Impressions: Each time the ad is viewed.<br />Cost-Per-Click: The cost for each click generated. <br />CPA: The cost per action – how much does it cost to get someone to take an action<br />
    11. 11. Traffic<br />A well executed PPC campaign sends targeted traffic to your site. <br />Plus, sites that rank both high in Paid and Organic results receive more clicks.<br />
    12. 12. Brand Recognition <br />Increased impressions with paid search results. If they see your ad even if they don’t click, they have increased awareness of your company. <br />However, a word of caution: Having ads with high impressions and a low CTR will result in a decreased Google Quality Score.<br />
    13. 13. 24/7 Advertising<br />Paid search ads start running immediately and continue to run 24/7. Potential buyers or customers will always be able to find you. <br />
    14. 14. Precision<br />PPC advertising has advanced controls:<br />Dayparting: You can choose to have your ads run only at certain times during the day.<br />Geolocation: You can target your ads to run in certain locations only. <br />
    15. 15. Calculating Your CPA<br />
    16. 16. Show Me The Money<br />So how much can you afford to spend?<br />Let’s figure out your Cost Per Action (CPA.) This is where an advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.<br />
    17. 17. Conversion Tracking<br />How it Works:Conversion tracking places code onto your site. Once the code is applied, conversion tracking places a cookie on a user's computer when he or she clicks on one of your ads. Then, if the user reaches one of your conversion pages, the cookie connects to your web page and conversion tracking records a successful conversion for you. <br />
    18. 18. Calculating Your Target CPA<br />Determine Your Conversion Rate<br />Calculate Your Gross Profit<br />Calculate Your Target CPA<br />Calculate Your Net Profit<br />Determine Maximum CPC<br />
    19. 19. Figure Out Your Conversion Rate<br />Conversions / Site Visits = Conversion Rate<br /> <br />If a site received 4,000 site visits in a month, and generated 80 conversions, the conversion rate would be 2%.<br /> <br />80 / 4,000 = .02 <br />
    20. 20. Calculate Your Gross Profit<br />Sales Price – Cost of Product = Gross Profit of Product<br /> <br />So if your sales price is $125 and your cost to build the product is $65 then your gross profit is $60. <br /> <br />$125 - $65 = $60 <br />
    21. 21. Calculate Your Target CPA<br />Sales Price * Sales & Marketing Cost % = Target CPA <br /> <br />So if you’re sales price is $125 and your sales and marketing margin percentage is 15%, your target CPA, including promotional costs, is $18.75. <br /> <br />$125 * .15 = $18.75 <br />
    22. 22. Calculate Your Net Profit<br />Gross Profit – Target CPA = Net Profit <br /> <br />So if your gross profit is $60 and you subtract your target CPA of $18.75 then your net profit is $41.25. <br /> <br />$60 - $18.75 = $41.25 <br />
    23. 23. Determine Maximum CPC<br />100/(100 * Conversion Rate %) = Required clicks to generate a conversion<br /> <br />So if the conversion rate is 2%, then you’ll need 50 clicks to get a conversion. <br /> <br />100/(100 * .02) = 50 <br /> <br />To calculate the maximum average cost per click your campaign can have, take your target CPA and divide it by your required clicks. <br /> <br />Target CPA/Required Clicks = Max Avg CPC <br />
    24. 24. Budget <br />
    25. 25. Custom Budgeting<br />Every business has a different budget and needs. PPC advertising allows you to specify how much you want to spend on any given day or month.  Custom budgets tailored just for your business.<br />
    26. 26. Fixed and Self-Funding Budgets<br />A fixed budget establishes a fixed amount you spend on PPC.<br />A self-funding budget is based on your ability to fund your PPC campaign by meeting specified sales goals. <br />
    27. 27. Achieving Better ROI<br />
    28. 28. The “Brakes” in PPC<br />What to do when your campaign isn’t working:<br />Keep an Eye on Costs<br />Not All Clicks Are Equal<br />Know When to Stop Spending<br />A/B Test<br />
    29. 29. Watch Your Google Quality Score<br />-The historicalclickthrough rate (CTR) of the keyword and the matched ad<br />-CTR of all the ads and keywords in your account<br />-The historical CTR of the display URLs in the ad group<br />-The quality of the landing page<br />-The relevance of the keyword to the ads in its ad group<br />-The relevance of the keyword and the matched ad to the search query<br />-Your account's performance in the geographical region where the ad will be shown <br />The higher your Quality Score, the lower your costs and the better your ad position.<br />
    30. 30. Investigate Long-Tail Keywords<br />Long-tail keywords are three or more words.<br />Traffic from long-tail keywords convert at a higher rate, and have a lower CPC, since demand for the keyword is lower. <br />
    31. 31. Good PPC = Good ROI<br />Chances are, the better your PPC, the better are your ROI. Keep these tips in mind. <br />Analyze the Data<br />Use Negative Keywords<br />Exact Match Over Broad Match<br />
    32. 32. A Few Words on Trada<br />
    33. 33. What is Trada?<br />Trada is the first (only) paid-search marketplace where agencies and direct advertisers can leverage the expertise of hundreds of skilled PPC experts, who work collaboratively and competitively to build and optimize sophisticated PPC campaigns. Everyone works on a pay-for-performance system earning money by generating low-cost clicks and conversions for advertisers.<br />
    34. 34. Join Trada As an Expert<br />-Earn money risk free, working when you want and where you want<br />-You don’t have to find or manage your own clients<br />-Choose the types of campaigns you want to work on.<br />-Join a community of PPC experts<br />
    35. 35. Where to Find Us<br /> @Trada<br />
    36. 36. Trada will send a copy of the presentation and a recorded webinar this week<br />
    37. 37. Specific Questions?<br />Elaine Ellis<br />Marketing Manager<br />Email me at<br /><br />Bill Adkins<br />VP of Sales<br />Email me at<br /><br /> @trada<br />