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Engine Ready | Search Engine Marketing Blog

TAG | PPC

Feb/10

16

Pay Per Click Calculator

If you’re not familiar with Engine Ready’s free software suite, Conversion Critic, you may want to take a moment to utilize some handy online marketing tools.  Conversion Critic can be used to evaluate your landing pages, check for broken destination URLs in your pay per click campaigns, and to forecast the performance of your PPC marketing efforts.

The calculator is perfect for computing expectations for a new campaign.  Many marketers and business owners want to calculate the risk associated with a new campaign.  Accurately forecasting return on ad spend is a challenge shared by all marketers, which the PPC Calculator attempts to relieve.

The free tool will also illustrate how slight changes in the conversion rate or cost per click can significantly impact your bottom line.  In the example below we can see that a 0.5% increase in conversion rate (everything else being equal) equates to thousands of more dollars in revenue.

Example:ppccalc1

Slide the button, or manually input your ad spend.

Forecast snapshot of performance.

ppccalc3

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Does this look familiar?

Google First Page Bid Estimate and Actual Position

Google First Page Bid Estimate and Actual Position

This inspiring sight is almost inevitable to anyone working in AdWords. Google takes care to inform you, in no uncertain terms, that your bid isn’t high enough to make the first page, and yet, when you look closer, your average position is still pretty good. Usually third or fourth. Definitely not on the second page.

Which just leaves all of us, search marketer and client alike, perplexed. What gives?

Anyone working in AdWords also figured out pretty quickly that it’s a mercurial creature, and often contradictory. Just because Google says something doesn’t necessarily mean that it means it, and the “below first page bid” situation is a prime example. In this case, a first page bid estimate does not equal the cost per click.

So just because Google says your bid is below the first page doesn’t mean that it actually is, and there are a few reasons why. Besides AdWords deciding to be contrary.

One, the first page bid estimate is just an estimate. That’s all. It’s an indication of how much you might have to pay to get on the first page, and not how much you actually will pay. In fact, you’ll often find that you pay less per click than your maximum CPC gives you room for. This is due to AdWord’s quality-based price system, which is a whole new beast of burden in and of itself.

Second, first page bid estimates only really work when a search query exactly matches the keywords that first page bid estimate is for. So if you’re using a broad or phrase match keyword, then forget about it; variations that trigger your exact keyword don’t make any difference in determining a first page bid estimate.

Third, Google search and the Google Search Network use different factors in determining pricing, ad position, and all that fun stuff. So that first page bid estimate you’re seeing? Only comes from Google search, not the Search Network, which is why you might be scratching your head at the huge disparity between the first page bid estimate that applies just to Google and the average CPC that applies to Google and the entire Search Network.

Finally, if you’re throwing your campaign around in more than one country, then the first page bid estimate comes from data from the country with the highest search volume for that specific keyword. Google does much better when you’re only targeting one country, so campaigns spanning multiple ones produce much less accurate first page bid estimates.

So the next time Google informs you that you’re below the first page bid in spite of all evidence on the contrary, that’s what gives.

Or AdWords just decided to be contrary.

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In the quest to create a truly epic pay per click campaign, our intrepid search marketer often runs the gamut of keywords, from the obvious to the creative to the downright silly.

But no matter how stupid “paper click” might sound as a keyword, there’s at least one person out there who’s going to search that exact phrase, right?

Right?

Oftentimes, depending on how enthusiastic the search marketer might be, an account can accumulate hundreds of keywords that never get any impressions at all, leaving one to wonder: is it really worth it, keeping all these zero impression keywords?

Maybe.

Generally speaking, it’s a good idea to cull any non-performing keywords, especially since a large number of them make it more difficult to manage your account. For the most part, they’re really not adding anything of value, since their click through rate is technically at zero percent.

On the other hand, a CTR of zero percent doesn’t necessarily lower your Quality Score, at least according to our Google sources. While CTR plays a major role in determining a keyword’s Quality Score, it’s not the only factor, not by a long shot. The historical performance of the keyword across Google’s entire system, the past performance of your display URL, the overall performance of your account—all of these go into the equation that churns out your Quality Score.

So while it’s safe to assume that most zero impression keywords are clogging up your account, it’s the Quality Score that ultimately decides whether a keyword is worth keeping or not. If the Quality Score is less than five, or otherwise significantly lower than the rest, your best course of action is to delete the keyword.

And if the Quality Score is good? It definitely doesn’t hurt to let it hang around a little while longer. A high quality keyword is better than nothing, right?

Right.

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Jul/09

27

Zager & Evans: Account Management Philosophy

There are many PPC account managers out there who are so tied to their original campaign structures that their account performance remains stagnant or even falters in the ever changing landscape of search engine marketing.

Whether it be out of fear or pride, we cannot expect a campaign which was created a year or more ago to still be relevant today.  Trendy strategies which were developed under different rules (such as Quality Score), under different economic conditions and under different webpage designs may now be inhibiting the goal of continued growth within a PPC account.

When an account starts to slip, strategies no longer work, CPA & CPC increases – You need to ask yourself… When is enough, enough?

I chose a late verse out of the song ‘In the Year 2525′- By Zager & Evans, to illustrate the concept:

In the year 8510
God’s gonna shake his mighty head
He’ll either say I’m pleased where man has been
Or tear it down and start again

The song has to do with the evolution of man from his original ‘design’ and how, overtime, that design lost relevance.  Ultimately towards the end of the song man is wiped away. The last verse begins with the same lyrics as the 1st verse – Thus restarting the cycle.

Visit the following links for the YouTube Video and Song Lyrics: Lyrics / Video

How does this relate? – Don’t be afraid to take your account, tear it down, and start again. Reevaluate the structure keywords, negatives, ad creative, grouping and overall account structure and begin it all over again.  You have learned many things over the past year, now re-apply that to a structure more conducive to those strategies.

Google allows you to undelete any/all campaigns which made it into an account; don’t allow fear to be the reason inhibiting you from making drastic changes.  Don’t fear that your historical data will start from scratch, if you need it, you can still run a manual.  Don’t allow your pride to get the best of you.  That masterpiece you constructed in Google over so many countless hours may now be at time in which to say goodbye to.  “Pride is a personal commitment. It is an attitude which separates excellence from mediocrity.” – Unknown

I can affirm to you – Your beloved keyword history/click-discount WILL translate into your new campaigns.  Of the dozen or so times I have used this strategy, it has been effective for me 100% of the time.  Below are the performance changes of my last rebuild. An ever increasing average CPC was our main challenge to overcome.  We rebuilt it, started our keywords at a much lower CPC, and adjusted it up form there based on its new performance starting on July 22nd, 2009.

July 1st to 21st

July 22nd to 27th

Conversion Rate

9.78%

6.15%

Cost Per Click

$11.95

$4.45

Cost Per Action

$122.22

$72.47

This is the 3rd rebirth of this account.  It is built to address the world of today, not of yesterday.

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