Thu_Feb__7_19:05:39_PST_2019

291 Doing the Math There are many factors that go into click price. It is somewhat hard to measure branding, but ad distribution can help build brand awareness. Most other things are tangible. If you know your average order size, profit per order, and estimated conversion rate, you can get a good idea what clicks are worth. Some people also factor in lifetime value of a customer, but that is harder to measure, and there is still enough opportunity in many markets to do your math primarily based on direct return. Before You Start It is a good idea to look at the various ads that are displayed and in which order over time. The top guy might be an idiot losing tons of money or a person who is paying a premium for branding. If ads from affiliate marketers or smaller sites are ranking around the same ad position over the course of a few weeks to a month, then they are probably doing something right (generating profits). It is worth it to take a couple weeks to do deep keyword research and market analysis before jumping into pay-per-click search engine marketing. You Will Lose Money Most clicks end up being failures. Even if you have a 30% conversion rate, it means that seven out of ten clicks did nothing for you. When you dip your toes into the pay-per-click market, there stands a good chance you will lose money before you start making money. There are several reasons for this: 1) You need to learn how the systems work. • Learn what terms are important and what ones are not • Learn how to target the ads • Learn how to write the ad copy • Learn how to bid, where to rank, and what terms are overpriced 2) You are competing against the best accounts. • Some competing advertisers may have other intangible assets that give them an unfair advantage. • If you are brand new, your competitors have more experience than you do. • Some ad campaigns have been fine tuned for months. • Search engines are building trust factors into ad accounts. Some advertisers may get quality boosts and cheaper ads just for being long- term advertisers, or for advertising trusted websites.