PPC Bid Calculator

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emp

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Jun 29, 2006
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The ppc_bid_calculator is just a little excel to help you with your bidding for keywords.


Fill in the fields outlined in green and you are good to go.


Visitors = Visitors you had to the site so far
CTR = Percentage of people clicking on an ad (0.1 = 10%)
Leads = Percentage of people completing the action / order
CPA = How much you get per action, order filled, etc..


You will find your break even point being calculated.


The break even point is the amount at which you would spend as much for advertising as you earn.


Preferably, you want to spend less per visitor or improve CTR or Leads Ratio.


The example in the file shows you a site with
350 visitors, a click through rate of 20% of which 5% complete the offer. The site earns 5.6 dollars for every lead.


At this point, the break even would be spending 5.6 CENT per visitor.


Enjoy.


::emp::
 


Images.. I take that as a huge compliment coming from you.

:)

::emp::
 
Very cool tool for those new to PPC AM.

To clarify though, is the percentage of people completing the offer a percentage of the people who clicked through or a percentage of total visitors?
 
I am sorry for not clarifying that.

The model used right now assumes that yes, the percentage of people completing the offer is a percentage from the CTR.

So basically, if

CTR .1 (10%)
CPA .1 (10%)

Then only 1% of initial visitors complete the offer in full.

::emp::
 
I'm a bit confused...is CTR considered the percentage of people who click through on the landing page?
 
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