Hi, Is there any business model that works with 'ad words' that is not published by google that shows expected return on ad words investment? For example ... i recently meet a guy from google who did a big talk on ad words and how it can benefit and grow your online business. I managed to speak with him after and asked ... "If i spend $100 on google adwords - what is a expected return on this?" His reply was that i should expect to earn 4-5 times what i spend (of course depending on my site) So my $100 i should expect a return of $400 - $500 ? This seems far to high for me? 400% return ? Mmmmm Any one advise me with there typical returns ?
It just depends. You can't generalize something like that. I used to get 5 times my spend in adwords when dealing with ringtones. The conversion rate slowly dropped due to more competition. I was only making twice my spend at that time. I would love for every click to convert but it doesn't work like that--you take what you can get. I think it comes down to how much you need to make in order for the work to be worth your time. If I have to spend $1000 to make $1200, it's a waste of my time, especially when it takes administering hundreds or thousands of keywords. Whatever percentage you feel is worth your time doing is what you should consider acceptable. At least in my opinion.
On Adwords, everything is based on metrics... How much can you convert with $100 is the question! It takes some times to get a good conversion rate, you will need to adjust your keywords on a daily basis at first. Give yourself a daily budget and work your way for 30 days. Expect to lose money the first month. Good luck!
I see your point. Im just trying to work out a adwords budget and mark up a expected return. I remember reading in another forum sometime ago that every $1 you should be getting $3 back ... thats a 200% profit which is great if it works?
I guess if you find out what you are going to sell will be little easier... I am testing Adwords myself with two different account. One of them is giving me a 10000% return... meaning for every $1 I spend, I get $100 profit or more. On the other hand, another account is only giving me 10% return... so... I guess you need to do your home work before throw your money away.
There's no formula or anything... it all depends on the product, the way you run your campaign, and your margins on the product.
Exactly -- it's difficult to make generalisations. However, you can take the view that if whatever it is you sell/offer is already being marketed using adwords then the advertisers are probably getting a positive ROI (I say probably because some people don't test - these are usually the same people who run advertising in yellow pages every year because thats what they did the year before, regardless of results). It's not a bad idea to have some expected ROI in your mind before you start and then you can look at your results and judge whether it's working for you. The point is as you get to know the keywords that convert in your industry you'll get better, if you can break even at the start then you're doing great. Good Luck
I have a friend who own four Hotels. he spent 2000$ in adwords, if he get some clicks which results in selling packages, it pays all campaigns..
I can't believe the Google guy said that you should expect 4 to 5 times without even looking at your website. AdWords is only half of the equation. Having a good website with quality landing pages is a major factor in the returns that you can expect.