Thursday, December 7, 2006

Leading of your first advertising campaign.

Leading of your first advertising campaign.

Let’s track our advertising campaign day after day during one week period
To begin with, let’s take the definite goods and set different budget every day. Let’s regard parameters of advertising campaign. This information includes all main indices, which we are to take into account every day. This is not hard and takes approximately 20 minutes. How much time you have spent for advertising campaign will result in your profit.
You have 24 hours access to the data, which are given below, if you use Google Adwords.

Impressions – number of advertisements, which are shown on Google AdWords.
Clicks – number of clicks “by target surfers” on advertisements
Cumulative Clicks – cumulative number of clicks (by growing result on days).
Ad CTR – (CTR = Click Through Rate) – ratio: clicks/showings of advertisements.
Average CPC – (CPC = Cost Per Click) – pay per click (for example, $0,07).
Advertising Costs – expenses for advertising campaign (every day).
Sales – number of sales per day.
Commissions Earned – commissions of sales per day.
Days Profit – profit per day.
Overall Profit – profit within advertising campaign of goods (by growing result).

The first day. We define budget in amount of 5$.( Advertising Costs ). Thus, we paid for 8231 showings of our advertisement by google (Impressions), 71 clients has clicked it and only one of them have bought goods. Aren’t you impressed? We can say that conversion of these goods 1 to 71. But at this budget for the amount of 5$, our profit comprises as follows:
Profit = 40.66$ – 4.97$ = 35.69 $ OF ONE SALE PER DAY!
For example, there was no sale during the second and the third day.
On the third day we decided to set the budget in the amount of 53$. And this have brought 745, seven of which paid the bill. Our net profit is 232,47$ during a week!

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