Cost Effective? Do Some Maths
Doing some math, like everything else, is the best way to determine how cost-effective Pay Per Click advertising is for your online business. Just like any other advertising medium, the cost of advertising is broken down to cost per person. In your website’s case, Pay Per Click advertising could be measured as cost per visit. The way for you to compute this cost is by dividing the profit you made from your website within a given period by the number of visitors you had during the same period of time. So, for example, you made $2,000 in profits and you had 1000 visitors led to your website by your Pay Per Click advertising campaign, the result would show you how much each hit costs. This will be your break even benchmark. You would need to bid much lower that this to show profit, and not only to cover advertising cost. (more…)