PPC ROI
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.