Pay Per Click Helpers Blog

PPC ROI

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This entry was posted on 3/31/2007 5:40 PM and is filed under ROI.

I have found that ROAS is an awful indicator for performance. Try using the pure ROI equation. Calculating the ROAS is a basic equation of revenue/cost.
To calculate PPC ROI:

First get the contribution: (Revenue x Margin) - Ad Cost
So using these numbers with a presumed 50% margin:
(1574 X .50%)=787)) Then - 787-1525=-738
contribution is -738

The to calculate PPC ROI Use: Contribution/Cost

-738/1525= -48% ROI

Yeah that is awful...

Another one you might be missing in the post is the Miva match option which sucks you dry. I gave up on Jeeves a while ago and have found they suck on so many levels, I read on another blog that they make more money backfilling listings from Google. Barry Diller is dipshit and that engine is completely ass backwards, 3 months billing cycles, using the looksmart interface, it goes on.

 

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