Hello, I do wonder If I should use adWords for my website. I have 3-5% Ctr. So should I spend anything on adWords? Or just keep advertising on any other way? Thanks .
It's not just about CTR, also the CPC too. Regardless, with a 5% CTR I don't see how you could make a profit with adwords. If you get a 5% CTR then your going to have to be paying 20x less for the adwords than your recieving for what your getting paid per click just to break even. That's a tough feat.
Uhh no. Although you have a 3-5% CTR you might be making $100 on each sale, so for 1,000 visitors you have an average of 40 sales or $4,000 revenue. If each click costs 10 cents, that 10,000 cents, you can convert to dollars. (I hope). Eric
It is useful to convert all as Value $ per Visitor. In the example above, the result would be: 4000$ revenue per 1000 clicks = every visitor is 4$ worth. Thus if your mean CPC (cost per click) is lower as 4$, you can use adwords to advertise your business successfully. But also if your CPC is higher, you can work on your ads in order to lower the CPC (i.e. by using keywords that are not so competitive) and get a better profitability. I think is a very easy way to calculate if you are on track with your AdWords advertising. In any case it will request testing, testing and more testing. Good luck, Alex