Avex Designs
Avex Designs - Creative Digital Agency

Wondering how much you should pay for each click when using Google AdWords or another PPC platform? Here’s An Easy Formula for Setting Ppc Bid Prices.

• First, look at your add performance to see how many clicks you’re getting.
• Then, figure out what your conversion rate for those clicks is (how many of them are turning to customers?)
• Finally, figure out what you’re profit margin is, on average, for those conversions.

By dividing that profit margin over your conversion rate, you can find your break-even point for PPC. For example, if you’re getting 100 visitors per day, averaging 10 sales, and earning $10 per sale, then you’re actually making a gross profit of $1 per click. Bidding anything above that is going to result in a loss unless you can convert more visitors into buyers.

This isn’t a foolproof system for establishing PPC bids, of course, but it’s a good starting point to make sure you don’t lose money on your online advertising.

An Easy Formula for Setting Ppc Bid Prices
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