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Paid advertisements are the best way to increase the visibility over the internet. It requires fewer efforts and time (but more money) than traditional SEO techniques to come at the top. You may be investing a handsome amount of money in PPC campaigns, but have you ever analysed whether or not each of your PPC account is benefiting you? According to SEO services Milton Keynes, you need to focus on four criteria which decide the success of any PPC investment. Let us know what are these criteria.
Cost per conversion: The idea behind PPC is that you have to pay the search engine a fixed amount of money for every click you get on your PPC ad. You get the top position on the search result page, so chances that users click on the ad and make a purchase increases. This is a win-win situation, but what if you are spending more than you can afford for each acquisition? You need to see how much you can pay for each conversion. Based on that, you can bid for the keyword and set your budget.
Determining cost per conversion is a tricky business because sometimes you do not get sales on the first click. If a customer purchase from you after 5 visits, the real cost of conversion is 5 times the original.
Return On Investment: It simply means how much you are earning after spending some amount on PPC ads. It is expressed as the difference of sum earned and sum invested. Increasing ROI can be risky because if you invest more on any PPC account, it is not guaranteed that sales will increase. Even if sales increases, there is no guarantee that profit would also increase.
Spent to Earned Ratio: It is expressed as the ratio of total investment on a PPC ad to earning. The smaller the ratio, the better for the business. Spend to earn ratio may be high initially, but getting repeated buyers can lower this ratio.
Average Order Value: It is the indication of how much you are getting per order. It may occur that purchasers are spending less per order means they are purchasing less valued products than those products which were at landing pages. Average order value is affected by the sales price of the product and various discount offers. AOV is not a correct parameter to judge the number of orders and revenue earned. It can only tell you about how much customers are spending per order. Some may be spending very high while may be spending less. Anyhow, you need to increase this AOV because more AOV means more profit.
You need to examine your PPC ads on the basis of these metrics because you cannot improve what you do not measure. So, SEO services York suggests that to increase the efficiency of your ad campaign, never forget to examine the present conditions; how much you are spending, how much you can afford, how much you are getting in return and how many orders you are processing. These metrics individually can determine the effectiveness of your PPC ads, but in combination, you can get even more valuable insights.
Cost per conversion: The idea behind PPC is that you have to pay the search engine a fixed amount of money for every click you get on your PPC ad. You get the top position on the search result page, so chances that users click on the ad and make a purchase increases. This is a win-win situation, but what if you are spending more than you can afford for each acquisition? You need to see how much you can pay for each conversion. Based on that, you can bid for the keyword and set your budget.
Determining cost per conversion is a tricky business because sometimes you do not get sales on the first click. If a customer purchase from you after 5 visits, the real cost of conversion is 5 times the original.
Return On Investment: It simply means how much you are earning after spending some amount on PPC ads. It is expressed as the difference of sum earned and sum invested. Increasing ROI can be risky because if you invest more on any PPC account, it is not guaranteed that sales will increase. Even if sales increases, there is no guarantee that profit would also increase.
Spent to Earned Ratio: It is expressed as the ratio of total investment on a PPC ad to earning. The smaller the ratio, the better for the business. Spend to earn ratio may be high initially, but getting repeated buyers can lower this ratio.
Average Order Value: It is the indication of how much you are getting per order. It may occur that purchasers are spending less per order means they are purchasing less valued products than those products which were at landing pages. Average order value is affected by the sales price of the product and various discount offers. AOV is not a correct parameter to judge the number of orders and revenue earned. It can only tell you about how much customers are spending per order. Some may be spending very high while may be spending less. Anyhow, you need to increase this AOV because more AOV means more profit.
You need to examine your PPC ads on the basis of these metrics because you cannot improve what you do not measure. So, SEO services York suggests that to increase the efficiency of your ad campaign, never forget to examine the present conditions; how much you are spending, how much you can afford, how much you are getting in return and how many orders you are processing. These metrics individually can determine the effectiveness of your PPC ads, but in combination, you can get even more valuable insights.
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