Google Ad Challenges

Google Ad Challenges

Challenge #2:

Not overspending on clicks.

Google loves making money just as much as you do. When launching campaigns I recommend starting with high bids because you’ll put your ads in a position to get more clicks, which leads to high-quality scores and ultimately, cheaper clicks. Bid too high, though, and you might blow through your advertising budget with a negative return on your investment.

It’s a balancing act, but you can take out the guesswork with some simple math. Calculate your maximum bid with this formula:

Max CPC = (average profit per customer) x (conversion rate of your online customers) x (1 – desired advertising profit margin).

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