What should be the price limit for CPC?

Discussion in 'Google AdWords' started by mobilefrenzy, Aug 12, 2006.

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  1. #1
    I am running adsense site and have signed up for Google adwords campaign.
    for a cell phone resource site http://www.explore-mobiles.com

    what should the price limit for cpc be?
    Don't want to spend more on adwords than I will be earning in adsense :)
     
    mobilefrenzy, Aug 12, 2006 IP
  2. Micromag

    Micromag Well-Known Member

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    #2
    Sorry, as I will not answer your question directly here:

    I personally don't think that you'll get profit sending adwords traffic for your adsense site.

    In the past this was very hard, now that Google requires high content relevance quality to activate keywords this is even more difficulty.

    AdWords is for who sell services and products.

    I would not spend money in adwords for your site, maybe others has a different point of view from mine.
     
    Micromag, Aug 12, 2006 IP
  3. 1EightT

    1EightT Guest

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    #3
    it's very difficult to do these days. Trial and error plain and simple.
     
    1EightT, Aug 12, 2006 IP
  4. pedigreechump6

    pedigreechump6 Active Member

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    #4
    I work in the paid search industry and the company I work for have a simple way of initially pricing our CPC on adwords.

    The information you need is:

    average value of click from your site (i.e. the average value of a click on your adsense ads) - this you should be able to work out based on your previous adsense earnings.

    the ratio of unique visitors to clicks

    your target ROI - that is the target profit you aim to achieve.

    Then the formula is:

    CPC= (average value of outbound click * ratio of uniques to clicks)/(1 + target ROI)

    Example:

    for every 100 unique visitors I get an average of 35 clicks on my ads. The average value of those clicks is $0.30 and I have a profit target of 15% (i.e. 0.25)

    then I would be prepared to pay (0.3 * 0.35)/(1 + 0.15) = $0.091 or 9.1 cents.

    But this tends to just be a starting point and we then use trial and error to adjust things as necessary.
     
    pedigreechump6, Aug 13, 2006 IP
  5. alur3n

    alur3n Peon

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    #5
    Buy keywords on Miva, not AdWords. Far cheaper.

    You'd have to tell how much you're getting per click on AdSense and what CTR.
     
    alur3n, Aug 15, 2006 IP