Google PPC Ads – Max CPC Formula

My max CPC bid calculator..

Maximum Cost Per Click Calculator

A simple yet effective process for calculating maximum CPC to match-up with estimated keywords CPC..

Max CPC = (ROI per customer) x (1 – projected profit margin) x (website’s conversion rate)

Maximum CPC is determined by the website’s conversion rate, ROI per customer, and projected profit margin.

Example..

Conversion rate = 5%
Profit margin = 33%
ROI per customer = Rs.100
So, Max CPC = Rs.100 x (1 – 0.33) x 5% = Rs.3.35

In case the above numbers are missing while setting-up the bid/budget in PPC campaigns, simply start guessing about the figures based on other available source of information and wait for tracking data to get more accurate calculations.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s