Google Adwords is the advertising wing of Google used by advertisers all over the world. This video tutorial would explain the basics of Adwords bidding in an easy way.
Every advertisement has a goal and this goal is tracked by way of a successful conversion.
The business must find out the exact cost per acquisition which is calculated as follows:-
Selling Price - Cost Price = Revenue (Total profit per successful conversion)
The rate at which successful conversion happens. It is calculated as follows:-
Conversions/Clicks = Conversion Rate
Ater you have determined the CPA and the Conversion rate, the next step is to determine the value of a click. It helps you to analyze the maximum amount you are willing to spend on every click (CPC). If the value of a click comes out to be $10 then you must bid at a rate of less than or equal to $10 per click.
CPA * Conversion rate = Value of a Click
Incremental Cost Per Click = Cost of Incremental Clicks (CIC) / Number of Incremental Click (NIC)
Where:- CIC = difference in the amount of cost by changing the bidding
NIC = difference in the amount of clicks by changing the bidding
Rest you can learn by watching the video below:-
Also See:-
Steps to Optimize Your PPC Campaigns
Why Seo is Still Favored by Organizations
Adwords Quality Score
Basics of Google Adwords
Seo Vs PPC Comparison
Determine a Keywords Overall Worth
How to Calculate CTR
Goal of an Ad
Every advertisement has a goal and this goal is tracked by way of a successful conversion.
Cost Per Acquistion (CPA)
The business must find out the exact cost per acquisition which is calculated as follows:-
Selling Price - Cost Price = Revenue (Total profit per successful conversion)
Conversion Rate
The rate at which successful conversion happens. It is calculated as follows:-
Conversions/Clicks = Conversion Rate
Value of a Click
Ater you have determined the CPA and the Conversion rate, the next step is to determine the value of a click. It helps you to analyze the maximum amount you are willing to spend on every click (CPC). If the value of a click comes out to be $10 then you must bid at a rate of less than or equal to $10 per click.
CPA * Conversion rate = Value of a Click
Incremental Cost Per Click (ICC)
Incremental Cost Per Click = Cost of Incremental Clicks (CIC) / Number of Incremental Click (NIC)
Where:- CIC = difference in the amount of cost by changing the bidding
NIC = difference in the amount of clicks by changing the bidding
 |
| When to change the bid based on the value of a click (Image credit:- thesearchagents) |
Rest you can learn by watching the video below:-
Also See:-
Steps to Optimize Your PPC Campaigns
Why Seo is Still Favored by Organizations
Adwords Quality Score
Basics of Google Adwords
Seo Vs PPC Comparison
Determine a Keywords Overall Worth
How to Calculate CTR
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