CPC too high to make campaign profitable - Do you have similar experience?

If you can make money on the changing metrics...I recommend preparing a grid with the following information. This may help you decide the max cpc based on your conversion rate and other metrics.
For example: If I spend $500 in ppc costs, I need to make at least $800 in sales revenue to cover my costs and make profit. If my average sales price is $25, I need to generate 32 sales.
$25 gross rev per sale
clicks conv rate sales ppc cost cpc-calc
3200 1.00% 32 $500.00 $0.16
2133 1.50% 32 $500.00 $0.23
1600 2.00% 32 $500.00 $0.31
1280 2.50% 32 $500.00 $0.39
1067 3.00% 32 $500.00 $0.47
914 3.50% 32 $500.00 $0.55
800 4.00% 32 $500.00 $0.63
711 4.50% 32 $500.00 $0.70
640 5.00% 32 $500.00 $0.78
582 5.50% 32 $500.00 $0.86
533 6.00% 32 $500.00 $0.94
492 6.50% 32 $500.00 $1.02
457 7.00% 32 $500.00 $1.09
427 7.50% 32 $500.00 $1.17

 

Thanks blackman. Yes! That's the experience I had as well. My conversions on content network were easily 100 x lower that on the search network.

 

Hey, in my experience, that's precisely the challenge. You need to estimate exactly the top limit you can pay for a click and keep good track of conversions and where they come from. In my case, $0.20 is the absolute limit. Beyond that, I start loosing money.

This means that 80% of my keywords and campaigns are now disabled. With the strategy and product price I have right now, I simply can't follow them (wherever they are going).

In my experience as well, every time I make an improvement, trigger higher conversion rates or CTR's or anything else, it seems that adword's automatic reaction is still to increase the click's price again.

Makes total sense from a stake holder's perspective of course, but not much sense on a small advertising budget side.

But again, learning a lot from this thread, already tried some strategies (DKI for instance) but no significant results so far

 

Thanks for that artmacc, I'll check it out

 

You need to understand how the minimum bid is calculated, and why.

If you keep increasing your bids, and don't fix the problem, Google will probably keep increasing the minimums.

Your minimum bid is based on your Quality Score.

Your Quality Score is based on your advert relevancy (to the search term), your website's relevancy, and your clickthrough rate (and a few other things that make a small difference).

Since the first two don't change much, your clickthrough rate is too low, and Google's penalising you, since searchers aren't interested in your advert.

Get people to click on your adverts if you want your minimum bids to come down. Just don't mislead them, since you will end up paying for worthless traffic.

 

Ive also noticed that a lot of e commerce sites use their main site as a landing page, does anyone have any tips for increasing my conversion through website optomization?

www(dot)sexycornerstore(dot)com let me know if im doing something wrong as well...since I am having the same problem with no customers.

btw im only 3 months into it

pm me with any tips

 

Meet the visitors keyword expectations... for example when I use the keyword phrases "printer cartridg item number 1054 blue, make sure the landing page used is exactly that item. Many companies when a creating landing page for that phrase will send me to the main printer cartridge page with all the makes and models which wastes time. On the other hand if the search phrase is only "printer cartridges" you can use the main page with all various brands etc. again... its about meeting the visitors expectations. Hope it helps. Art

 

work on your landing pages may boost the ROI upto 1000%

and i am true

Sam