eCPC At The Ad Campaign Level

Posted on 03 March 2007 by SonHouse

If you are going to play the cpc or ppc game to drive traffic to your site/offer, it will help if you can determine how much money you are in fact making or losing on a “per click” basis, that is before you even get those users to the advertiser or offer page in the hope of converting them to a sale or lead.

Most affiliate companies like Azoogleads do offer the eCPC info within your account but it is for those that have converted once they already clicked through to the offer page from your landing page.  That is great info to have, obviously, but does not tell the whole story.  I like to drill down even further and look at the eCPC at the ad campaign level.

How can you do this?  Well, you need to calculate your break even amount per click you are running.  For example, if your offer pays out $20 per lead you would simply divide the number of conversions by the TOTAL clicks at the ad campaign level and multiply that by the $20 payout.  If you have 5 leads from 200 ad clicks, not offer clicks, the break even point would be this:  5/200 * $20.00 = .50

So, that means if you can keep your adspend on average under .50 per click, you will make money…in fact, it’s a cash machine at this point.  The difference between what you spend and the break even point is profit, as long as it’s under the break even amount.  Just a few tweaks to make sure you are consistently holding your averages, then just crank up the adwords, adcenter and ysm ad budgets and watch the cash roll in.

I chart mine out in excel on a daily basis to make sure I can see what is happening with my campaigns.  I run ads in the 3 big networks so I have cells for each daily amount spent in each network, then I just do the math from there to show me how much I’m making on each click.

There is something very gratifying knowing that instead of paying out so much per click, I can tell myself, I’m making x amount every time someone clicks on one of my ads.  If a particular offer is not in the black, I continue to test it until I get it there or I drop it.

2 Comments For This Post

  1. Melvin Says:

    Hi,
    I stumbled onto your site and bookmark it. Its really great info and thanks for sharing this info with newbie like us. One question that I wanted to ask, if you are doing cost per lead marketing and your payout is 1.20 per lead, if you look at 100 leads to calculate yr ecpc, the cpc is 0.0144, there is no way to have keywords that you can bid at 0.014..can you share your take on this ?

  2. SonHouse Says:

    Hey Mevlin,

    These types of CPA offers are hard to convert to winners in PPC. The payout is just too small, and due to the min requirements for the 3 major ad networks, it makes it difficult.

    You would have to have a high conversion rate, say 10%, to make some money on this one. If you made 10 conversions for every 100 clicks in your example. You would have a breakeven point of .12 per click..so, if you can keep your cpc below that, you will make money, just not a whole lot. I would try to find some higher payout offers or ask your affiliate manager to increase your payout on the one you have.

    Also, you can explore the other cpc networks, there are many out there. You can get clicks for as little as .01 at some of them, so spending .01 to make .12 or $1000 to make $12000 sounds even better, the math is the same though if you can drive the traffic and keep conversions the same.

    Good luck..

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