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Does anyone have any good links or articles about Cost Per Click Advertising (CPC) and Conversion Rates?<br><br>
I am wanting to start a Google Adwords campaign and have all of the google analytics and e-commerce tracking on my website, but I want to learn more about how to know if it is actually working?<br><br>
For example, what is a good click thru rate? And more importantly, the cost per conversion...is this how much you spend in ads to get just 1 sale?<br><br>
How do you know the price your paying is all worth it??<br><br>
TIA!
 

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good links- the official google adwords help and forums are useful. Sorry, no articles bookmarked come to mind.<br><br><br>
"I am wanting to start a Google Adwords campaign and have all of the google analytics and e-commerce tracking on my website, but I want to learn more about how to know if it is actually working?"<br><br>
well if the info is reporting, it's working. google analytics, analytics conversion goals, and adwords conversion tracking are separate things.<br><br>
"For example, what is a good click thru rate?"<br>
Depends hugely on individual situation, the price per click, the conversion rate and average conversion amount. the last thing you need is a high rate of clicks if they're expensive and/or aren't translating to sales and returning visitors. you're charged for those clicks! <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile"><br><br>
"And more importantly, the cost per conversion...is this how much you spend in ads to get just 1 sale?"<br><br>
total paid divided by number of conversions. (a conversion in retail is typically a sale but you other businesses count new registrations)<br><br><br>
"How do you know the price your paying is all worth it??"<br>
If the price you paid is less than the value you received
 

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Whether you are happy with your cost/conversion really depends on what you're selling. If you're paying $10 in advertising costs to sell a $25 sling, then that's a big chunk of your profit gone. However, that same $10 used to advertise and sell a $350 cloth diapering package would be a good investment.<br><br>
Adwords advertising is constantly a work in progress. Optimizing your ad, your landing page (where on the site the ad goes), etc. Depending on your category, Google ads are really saturated and competitive with a lot of people paying top dollar to compete for the same keywords.
 

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I am using PPC to build my list and bring targeted traffic to my site. I actually pay $0.06 per click and have a very high opt in rate, so it is working very well for me. It took some trial and error and I do monitor it.
 

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If anyone needs more information on this and other methods for generating SEO and links etc try the book: Search Engine Optimization, An Hour A Day. Its a great read.
 

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For specific information on Google Adwords, do a Google search for Perry Marshall. He has some great resources (free and otherwise) that will tell you everything you need to know about Adwords and then some.
 
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