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Finding ROI with Online Advertising Campaigns

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Finding ROI with Online Advertising Campaigns

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  1. Finding ROI with Online Advertising Campaigns Executive SummaryFinding ROI with Online Advertising CampaignsSearch engine keyword programs like Google AdWords and other pay-per-click (PPC)advertising campaigns have proven to be an exceptionally inexpensive method forgenerating web traffic, qualified leads, and online web-sale revenues. Determininghow much daily budget to set aside; knowing the right amount to spend per-click;and assessing ROI, can be much more difficult tasks. Use our downloadable OnlineAdvertising ROI Calculator for help with your next program.What are the Key Considerations? • Product Price - what is the online selling price for your product? • Cost of Goods Sold - for each unit of product sold, what are your costs? • Lead Conversion % - what percentage of web visitors will purchase? • Daily Advertising Budget - what is the max you are willing to spend daily? • Cost Per Click - how much does it cost to purchase keywords/ad clicks? • Daily Leads - how many leads (web visitors) will your budget provide? • Revenue Per Month - how much incremental revenue will be generated?Action Plan: 1. Understand Pay-Per-Click - read our summary Pull Prospects with Google AdWords to get a high level understanding of this concept. 2. Short-List your Keywords - create a list of keywords that are likely to be searched for by your target audience. Use Googles Keyword Tool to generate a long list of related keywords and phrases, and view pay-per-click estimates. 3. Determine Lead Conversion % - if you have transactional data already, identify how many visitors it takes to generate one new web-sale. If you do not have the data, make a conservative estimate such as 0.05% conversion. 4. Assess ROI for Campaign - use our Online Advertising ROI Calculator to determine what kind of revenue & ROI to expect based on your daily advertising budget. Reassess conversion rates after the first month. © 2009 Demand Metric Research Corporation

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