How to calculate feasibility for a PPC campaign?

August 8, 2007

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What calculations do you use BEFORE starting a PPC campaign and before spending any money?

You can spend hours on keyword research before and during a PPC campaign, but can digitalpoint forum members give feedback what kind of “quick and dirty” calculation is best for figuring out whether PPC is even an option for a new site or new product?

Thanks in advance for input!

If you bid less than your conversion rate * your profit per conversion, then you’ll make more profit than you spend.

So, as long as you get conversions, and you bid the right amount, you should inevitably make money (unless your click value is less than your minimum bid).

Of course, until you set up the campaign, you can’t know your conversion rate through PPC, or your minimum bids, so I agree that testing is the only way to find out if it’ll work.

I’ve managed campaigns that I thought would work, but didn’t, and I’ve managed campaigns that I thought would fail, but they worked very well…

Question made by: wwwmasters And answered by: CustardMite At Digital Point

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