The return depend on how targeted your keyword is. More targeted your keyword the higher your return will be.
Your potential ROI is contingent on a couple of things; 1) How you manage your campaign - i.e. how targetted was the visitor who clicked on your ad. 2) The page you send them to. ROI, even on the most targetted visitor, will be horrible if the page you sent them to can't close the deal. 3) Your profit margion on your product/service. When you're getting started with Adwords start slow and test everything (keywords bids, ad creative, variations on base keywords, etc) until you come up with a formula that works well for your particular market.
My ROI has been all over the board over the years. Click cost in relation to destination profit potential is an important factor.
You basically need to make sure your ROI is more than the amount you put into adwords. If you spend 20 bucks in advertising just to sell a 12 dollar product you're not getting anywhere. You have to research your keywords very carefully and see how competitive they are. I usually start small, and if I get good results, I invest a bit more.
Thanks tesla, when starting a PPC campaign, do you start with the less competitive KWD's first and go up, or start with both?
For my site, I started with a mix of keywords, less and more competitive. The reason I, personally, did this is because it is taking forever to get listed in Google's search engine. So, I guess you might also want to consider your Google ranking on the keywords you are considering. 95% of my sales are coming from Adwords right now. Just my 2 cents.
Set yourself up with a pot that you are comfortable with and just see how it goes. The response won't be instantanious but you need to weigh it up with the number of hits / enquiries that you're currently getting. If after spending say £$50 you've got nothing maybe you need to ask questions about how your website is performing - not blaming it on the adwords.
To get back to the original question I spend about £100 a day on Adwords. This is bearing in mind that the cheapest "product" in my range is £500.00.
My Adwords budget is £300 a day as the keywords in my industry are VERY competitive. CTR varies from 7.5 - 8.5% and I'm often only a few £££ away from exceeding the daily budget. The site is only three months old so I've obviously not been 'awarded' an organic google ranking yet. But big savings are afoot the day that google debut comes!
No I'm completely Serious. And it's a large number of URL's I run ads for. I attached a graph I had google generate of my daily spend for this month (so far).
I didn't doubt your spend! Did doubt your income though only pulling your leg. No professional jealousy here, honest... really.... I'm not lying... I don't want $500,000 a month sales...... really!
Total sales are actually well over a million. Only half a million can be attributed to incoming traffic from AdWords though. We track unknowns, serps, and ppc.
Thought I would come in and lend a bit of credibility. KernelKlink sits 5 feet from me, he is the adwords guy here and yes we make well over a million a month in sales. Will we post our site URL's? NO, would you cut your own throat in shark infested waters? Is it OUR money....NO, SO. Yes he is for real, yes we have the same IP because well we work in the same building, and yes he is big pimpin .