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Old May 30th, 2006, 01:59 PM
Fearless_Shultz Fearless_Shultz is offline
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Typical ROI from Adwords

Hi all,

I manage all the adwords advertising for my company and have done for some time. I am just wondering really, how well I am doing.... my account as a whole is consistently providing a ROI of between 650 and 700% however I have no frame of reference for what consitutes a good return percentage on adwords as I have only ever run campaigns for my current employer and was interested to find out how this compares....

I guess such variations as industry type etc need to be taken into account... the particular area I work in could be described as travel I guess....

any comments from the adwords gurus out there much appreciated

cheers

shultz

Last edited by Fearless_Shultz : May 31st, 2006 at 04:30 AM.

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Old May 31st, 2006, 08:41 AM
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Quote:
Originally Posted by Fearless_Shultz
...my account as a whole is consistently providing a ROI of between 650 and 700%


700% in travel is phenomenal! As far as ROI goes you are doing well, but you haven't provided enough info for us to make any real judgements. Achieving a great ROI isn't very difficult. If you have a unique product like "Super Pink Latex Widgets" and you are biding on this exact term only, your competition is going to be almost nil, your CTR will be extremely high and conversions great. However, your impressions and clicks will be negligible. The top travel companies have much lower ROIs because they also want volume. When you are set a sales and ROI target things get much harder!

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Old May 31st, 2006, 05:02 PM
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I can't understand why folks talk about ROI.

Isn't dollars per day a far better metric?

You could have a fantastic ROI but if you are making $37 a month so what? I think that time needs to be in the denominator to understand how well you are doing and where you should build your attacks.
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Old May 31st, 2006, 06:13 PM
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Quote:
Originally Posted by EGOL
I can't understand why folks talk about ROI.

Isn't dollars per day a far better metric?

You could have a fantastic ROI but if you are making $37 a month so what? I think that time needs to be in the denominator to understand how well you are doing and where you should build your attacks.

I agree. If you were to put in $0.01/day and claim to earn me a 1000% ROI I wouldn't be overly excited when I got the check. However if you claimed you could earn me $1000/day from advertising I would be thrilled.

I do however would like to know how much was spent to get that $1000/day, so I guess you can't overlook ROI, but both should be reported if you really want to get an idea of the success of the campaign.

Large profit, I guess, is the underlying goal.
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SEO_AM agrees: ROI has to be there, but there must be sufficient cash flow generated to fund the enterprise. A
better check on how well you are doing is free cash flow. Free cash flow allows you to fund your
efforts and realize a profit.

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