How to determine ROI for online campaigns

17 Dec, 2010 No Comment CPC daily advertising budget Google Adwords keywords Lead conversion online marketing campaign PPC qualified leads ROI search engine
Small and medium scale enterprises have enormous tools now to promote their product and services. Search engine keyword programs like Google AdWords and other pay-per-click (PPC) advertising campaigns have proven to be an exceptionally inexpensive method for generating web traffic, qualified leads, and online web-sale revenues.

Google Adword Campaign
Determining how much daily budget to set aside; knowing the right amount to spend per-click; and assessing ROI, can be much more difficult tasks

Key Considerations-

* Product Price – what is the online selling price for your product?
* Incurred Cost – Determine your cost for each unit of product sold.
* Lead Conversion % – what percentage of web visitors will purchase? if 100 clicks and lands up in your page how many would buy.
* Daily Advertising Budget – what is the maximum amount you are willing to spend daily? Its always advisable to have a discipline when dealing with Adwords.
* Cost Per Click – how much does it cost to purchase keywords/ad clicks?
* Daily Leads – how many leads (web visitors) will your budget provide?
* Revenue Per Month – how much incremental revenue will be generated?

Plan of Action -

1. Understand PPC – Understand the nitty gritty of PPC program, how does it work.
2. Select Keywords – you should create a list of keywords that are likely to be searched for by your target audience. Use Google’s Keyword Tool to generate a long list of related keywords and phrases, and view pay-per-click estimates.
3. Determine Lead Conversion % - if you have transactional data already, identify how many visitors it takes to generate one new web-sale. If you do not have the data, make a conservative estimate such as 0.5% conversion.
4. Assess ROI for Campaign – Determine what kind of revenue & ROI to expect based on your daily advertising budget. Reassess conversion rates after the first month.

-Hitesh, vcBytes.com