ROI of Paid Searchb y TradaHashtag is #ROIofPPC

1. Intro2. Is PPC Right for Your

Company?3. Benefits of PPC4. Calculating Your CPA5. Achieving Better ROI6. About Trada

Hashtag is #ROIofPPC

Meet Mike Ramsburg & Elaine Ellis

Mike RamsburgTradaAgency Program Managerhttp://www.trada.com

Elaine EllisTradaSocial Media/Marketing Managerhttp://www.trada.com

Is PPC Right For Your Company?

Is PPC Right For Your Company?Two basic ways people end up making

money with their websites. They sell something or they get a lead who 

eventually they can sell something to.

E-CommerceWhen people search for a product your selling, having a PPC ad will ensure buyers find you. E-commerce sites are the most frequent users of search engine marketing.

Ingredients for Success: -Need a comprehensive keyword list for each product-Implement conversion tracking-Need proper landing pages-Manage inventory against ads running-Offer guarantees or special offers

Lead GenerationUsing paid search for lead generation helps you find sales prospects who are interested in your service or product.

Ingredients for Success: -Need a comprehensive keyword list for each product or service -Implement conversion tracking-Need proper landing pages -Strong lead generation form-Offer an incentive-Make it easy to contact you

BrandingBranding campaigns are for people looking for traffic without a specific call to action for visitors to take. It’s lacks the measurability of lead generation and e-commerce.

Ingredients for Success: -Use local targeting if applicable-Bid on your company and brand names-Create landing pages where appropriate

Benefits of PPC

Paid search is measurable from start to finish. Advertisers can track what keywords are being searched, clicks and if a buyer purchased a product from the click. Impressions: Each time the ad is viewed.

Cost-Per-Click: The cost for each click generated.

CPA: The cost per action – how much does it cost to get someone to take an action

Measurable

A well executed PPC campaign sends targeted traffic to your site.

Plus, sites that rank both high in Paid and Organic results receive more clicks.

Traffic

Increased impressions with paid search results. If they see your ad even if they don’t click, they have increased awareness of your company.

However, a word of caution: Having ads with high impressions and a low CTR will result in a decreased Google Quality Score.

Brand Recognition

Paid search ads start running immediately and continue to run 24/7. Potential buyers or customers will always be able to find you.

24/7 Advertising

PPC advertising has advanced controls:

Dayparting: You can choose to have your ads run only at certain times during the day.

Geolocation: You can target your ads to run in certain locations only.

Precision

Calculating Your CPA

Show Me The Money

So how much can you afford to spend?

Let’s figure out your Cost Per Action (CPA.) This is where an advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.

Conversion Tracking

How it Works:Conversion tracking places code onto your site. Once the code is applied, conversion tracking places a cookie on a user's computer when he or she clicks on one of your ads. Then, if the user reaches one of your conversion pages, the cookie connects to your web page and conversion tracking records a successful conversion for you.

Calculating Your Target CPA

1. Determine Your Conversion Rate2. Calculate Your Gross Profit3. Calculate Your Target CPA4. Calculate Your Net Profit5. Determine Maximum CPC

Figure Out Your Conversion Rate

Conversions / Site Visits = Conversion Rate If a site received 4,000 site visits in a month, and generated 80 conversions, the conversion rate would be 2%. 80 / 4,000 = .02

Calculate Your Gross Profit

Sales Price – Cost of Product = Gross Profit of Product So if your sales price is $125 and your cost to build the product is $65 then your gross profit is $60. $125 - $65 = $60

Calculate Your Target CPA

Sales Price * Sales & Marketing Cost % = Target CPA So if you’re sales price is $125 and your sales and marketing margin percentage is 15%, your target CPA, including promotional costs, is $18.75. $125 * .15 = $18.75

Calculate Your Net Profit

Gross Profit – Target CPA = Net Profit So if your gross profit is $60 and you subtract your target CPA of $18.75 then your net profit is $41.25. $60 - $18.75 = $41.25

Determine Maximum CPC100/(100 * Conversion Rate %) = Required clicks to generate a conversion So if the conversion rate is 2%, then you’ll need 50 clicks to get a conversion. 100/(100 * .02) = 50 To calculate the maximum average cost per click your campaign can have, take your target CPA and divide it by your required clicks. Target CPA/Required Clicks = Max Avg CPC

Budget

Custom BudgetingEvery business has a different budget and needs. PPC advertising allows you to specify how much you want to spend on any given day or month. Custom budgets tailored just for your business.

Fixed and Self-Funding Budgets

A fixed budget establishes a fixed amount you spend on PPC.

A self-funding budget is based on your ability to fund your PPC campaign by meeting specified sales goals.

Achieving Better ROI

The “Brakes” in PPC

What to do when your campaign isn’t working:

1. Keep an Eye on Costs2. Not All Clicks Are Equal3. Know When to Stop Spending4. A/B Test

Watch Your Google Quality Score-The historical clickthrough rate (CTR) of the keyword and the

matched ad -CTR of all the ads and keywords in your account-The historical CTR of the display URLs in the ad group -The quality of the landing page-The relevance of the keyword to the ads in its ad group -The relevance of the keyword and the matched ad to the search query -Your account's performance in the geographical region where the ad will be shown

The higher your Quality Score, the lower your costs and the better your ad position.

Investigate Long-Tail KeywordsLong-tail keywords are three or more words.

Traffic from long-tail keywords convert at a higher rate, and have a lower CPC, since demand for the keyword is lower.

Good PPC = Good ROIChances are, the better your PPC, the better are your ROI. Keep these tips in mind.

Analyze the Data

Use Negative Keywords

Exact Match Over Broad Match

A Few Words on Trada

What is Trada?

Trada is the first (only) paid-search marketplace where agencies and direct advertisers can

leverage the expertise of hundreds of skilled PPC experts, who work collaboratively and

competitively to build and optimize sophisticated PPC campaigns. Everyone works

on a pay-for-performance system earning money by generating low-cost clicks and

conversions for advertisers.

Join Trada As an Expert

-Earn money risk free, working when you want and where you want-You don’t have to find or manage your own clients-Choose the types of campaigns you want to work on.-Join a community of PPC experts

Where to Find Us

Trada.com Trada.com/blog @Trada

Trada will send a copy of the presentation and a recorded webinar this week

Specific Questions?

Elaine EllisMarketing ManagerEmail me at eellis@trada.comwww.trada.com

Bill AdkinsVP of SalesEmail me at badkins@trada.comwww.trada.com

http://trada.com http://trada.com/blog @trada