Cost Calculation of Pay per Click

Discussion in 'Google AdWords' started by shezzi80, Dec 23, 2007.

  1. #1
    Hi,
    I'm a newbie. i want to advertise for a business www.pcsurgeon4u.com
    can you please give me suggestions? how can i start advertising.?
    menas how much budget should i define for that ..?and how much business would i get?how can i get statistics? please
    thanks
     
    shezzi80, Dec 23, 2007 IP
  2. Cypherus

    Cypherus Peon

    Messages:
    1,551
    Likes Received:
    102
    Best Answers:
    0
    Trophy Points:
    0
    #2
    What's your monthly budget?

    My advice is to learn most of the things from the Adwords Learning Center or have someone to help you with it.
     
    Cypherus, Dec 23, 2007 IP
  3. shezzi80

    shezzi80 Peon

    Messages:
    4
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #3
    My monthly budget is approximately 400£.

    How can i start with that..?
    my competitor websites are..
    if you type in google.com
    computer repair/laptop repair..

    normally we charege 40-70 £ per hour.
     
    shezzi80, Dec 23, 2007 IP
  4. coolBananas

    coolBananas Peon

    Messages:
    44
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #4
    shezzi80,

    first, you've got to calculate what the value of a new customer is ... for you its easy because you know what you charge per hour. then you've got to look at how much an average customer spends with you to determine the value of a new customer.

    next, you've got to determine how many visitors it takes to your website (i.e. clicks) to gain a new customer.

    so to break even, the absolute MAXIMUM that you should pay per click is:
    (value of new customer)/(# of clicks to gain new customer)

    but i suggest you start off your cost per click a lot less than that, just for safety sake.
    but whatever you do, no matter what the competition does, or what google tells you, DO NOT exceed the maximum CPC that you determined from the calculation above.

    hope that helps...
     
    coolBananas, Dec 23, 2007 IP
  5. shezzi80

    shezzi80 Peon

    Messages:
    4
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #5
    Normally 10 People who click on my website.i Make 1 out of them definitely my customer if they call me.and i charge £50 pound per hour for service.?

    Is it easy to make a campaign or it involves technical knowledge.?

    How can i start?

    Thanks
    Shahzad
     
    shezzi80, Dec 23, 2007 IP
  6. coolBananas

    coolBananas Peon

    Messages:
    44
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #6
    ok so your absolute max cpc should be 5 pounds, which is ridiculously high so don't even think about making it so high.

    do some research and try and find out what a good CPC is for your niche.
    i've never been in your niche so i cant advise you there, but i do know that it would no very far less than even 1 pound

    and make sure you have at least 2000 keywords in your account.

    its not difficult to set up your google account.
    their help service is quite good
     
    coolBananas, Dec 23, 2007 IP
  7. webmaster

    webmaster Active Member

    Messages:
    189
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    53
    #7
    As per you, your monthly budget is 400£ only. If we remove saturdays and sundays from month then you will have 22 working days and according to this per day you can spend approx. 20£ only which is very less.
    So, for this you have to keep close eye on your spend and clicks. You should start with
    1) Cheap keywords relating to your business (Cheap means long trail keywords). These will bring very less clicks but you will atleast have more visitors.
    2) Run various ad. creatives to check CTR or each.
    3) Create prope landing page for category wise page (Separate for PC, separate for laptop etc..)
    4) Run ads. in phrase or exact instead of broad.
    5) and definately read.. Google guidelines at adwords learning center/.
    6) If require more assitance P.M. me.

    Thanks_
     
    webmaster, Dec 24, 2007 IP
  8. shezzi80

    shezzi80 Peon

    Messages:
    4
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #8
    Can you please explain CTR?
     
    shezzi80, Dec 24, 2007 IP
  9. bl4ckmaN^

    bl4ckmaN^ Well-Known Member

    Messages:
    4,641
    Likes Received:
    60
    Best Answers:
    0
    Trophy Points:
    165
    #9
    bl4ckmaN^, Dec 24, 2007 IP