Case Study: The Math on Creating a Successful Adwords Campaign
Setting up a successful Google Adwords Campaign is all about doing the math…
Case in Point, RiffRaff Diesel Performance wanted to drive traffic with the main goal of increasing conversions to their online store. Establishing realistic goals on the front side is essential to the success of the campaign, so let’s do the math:
To start off we want to work towards a 10% increase in sales, so we look at the average online sales for a 30 day period as well as the average conversion rate for the store.
Based on an average CPC of $1.12 we would require a budget of $4,000 per month to drive an additional 3,600 visitors and at an average order value of $240 with a conservative conversion rate of 2% this would provide a return of $17,280.
The first 30 days we actually spent $4,358.25 at a 2.37% conversion rate driving 5,646 clicks for a Total Conversion Value of $37,362.10
This was a 7.57% ROI or increase in sales.