If you want to be as successful as you possibly can be at PPC, then the most important thing to pay attention to is data. The more data you collect, the more precise and efficient you can be with the way you spend money and the more guaranteed your ROI will be.
And the very best way to collect data? That would be to use goals.
Let’s rewind a little and look at what those are and why they matter so much.
How to Collect Data for Your PPC Campaign
The best way to collect data for your PPC campaign is to make sure you know exactly how much each customer is worth to you. Once you know that, you can then go on to know how much you can afford to spend per visitor and still guarantee profit (or near as).
So to work out how much money each visitor is worth for you, you first need to look at how much your website is currently earning on a regular basis. Perhaps it’s $100 a day, which is a result of having 1,000 unique visitors to your site (unique visitors are more important here than repeat visitors). That’s a very good amount of profit for 1,000 visitors but let’s imagine this for the sake of argument.
So if you are getting $100 from 1,000 visitors, that then means that each visitor is worth 10cents to you. This therefore means that if you pay 9 cents per click then you should always eventually make your money back. You can then set your own budget in order to drive that higher and higher.
Why It’s More Complex Than That
But $100 per 1,000 visitors is unrealistic for most people as we’ve already discussed. You’re much more likely to be making $10 per 1,000 visitors or even $1. So that means you can only spend 1cent, or .1 cent on each visitor…
Or at least that would be the case if it wasn’t for CLV (Customer Lifetime Value) – the fact that some of those customers will become repeat customers.
Likewise, it’s somewhat ignoring the fact that the customers you get through PPC will be worth even more to you. That’s because those customers will have come from highly targeted ads and they will have searched for your products! Of course those people are more likely to want to buy from you!
So the thing to ask yourself instead is what the value of each customer is for each search.
And fortunately, Bing lets you do this by setting up goals. A goal is created by using a cookie that can – for example – be placed on your checkout page.
If someone makes it to that page, then Bing will know that that person has completed your goal and therefore they have earned you money. This then means you can see how much each search is earning you because you can see which advert led to that sale. That in turn means you can workout the maximum bid for each search term and thereby know precisely where to invest in order to grow!