Google PPC Costs
Discussion
I own a web based promotional gifts business that uses Adwords as a sales generation channel. Our success with Adwords has been patchy but I am turning a profit. The volumes of traffic on promotional gifts are low but highly competitive. We all seem to think the other guy is getting the sales. To find out I rang around my competitors and all seemed to be in the same position.
My issue is that Adwords is consuming around 45% of gross profit of Adwords generated sales. Previously when running campaigns for Travel I expected to pay 25% of GP to Google, but 45% seems high.
I don’t know if approx 45% is now the accepted norm?
I own a web based promotional gifts business that uses Adwords as a sales generation channel. Our success with Adwords has been patchy but I am turning a profit. The volumes of traffic on promotional gifts are low but highly competitive. We all seem to think the other guy is getting the sales. To find out I rang around my competitors and all seemed to be in the same position.
My issue is that Adwords is consuming around 45% of gross profit of Adwords generated sales. Previously when running campaigns for Travel I expected to pay 25% of GP to Google, but 45% seems high.
I don’t know if approx 45% is now the accepted norm?
I own a web based promotional gifts business that uses Adwords as a sales generation channel. Our success with Adwords has been patchy but I am turning a profit. The volumes of traffic on promotional gifts are low but highly competitive. We all seem to think the other guy is getting the sales. To find out I rang around my competitors and all seemed to be in the same position.
My issue is that Adwords is consuming around 45% of gross profit of Adwords generated sales. Previously when running campaigns for Travel I expected to pay 25% of GP to Google, but 45% seems high.
I don’t know if approx 45% is now the accepted norm?
My issue is that Adwords is consuming around 45% of gross profit of Adwords generated sales. Previously when running campaigns for Travel I expected to pay 25% of GP to Google, but 45% seems high.
I don’t know if approx 45% is now the accepted norm?
I own a web based promotional gifts business that uses Adwords as a sales generation channel. Our success with Adwords has been patchy but I am turning a profit. The volumes of traffic on promotional gifts are low but highly competitive. We all seem to think the other guy is getting the sales. To find out I rang around my competitors and all seemed to be in the same position.
My issue is that Adwords is consuming around 45% of gross profit of Adwords generated sales. Previously when running campaigns for Travel I expected to pay 25% of GP to Google, but 45% seems high.
I don’t know if approx 45% is now the accepted norm?
I own a web based promotional gifts business that uses Adwords as a sales generation channel. Our success with Adwords has been patchy but I am turning a profit. The volumes of traffic on promotional gifts are low but highly competitive. We all seem to think the other guy is getting the sales. To find out I rang around my competitors and all seemed to be in the same position.
My issue is that Adwords is consuming around 45% of gross profit of Adwords generated sales. Previously when running campaigns for Travel I expected to pay 25% of GP to Google, but 45% seems high.
I don’t know if approx 45% is now the accepted norm?
Yes - I've engaged an agency to handle it as well as I am too busy quoting for work.
I've amended most adverts to feature a best price and the min order qty to prevent non target audience clicks. Started using price ranges so users can see we provide from low cost to high end items.
Use a full range of keyword variations and break poor performing ads out into own ad groups so they can be fine tuned.
The principle issue is the cost, it's just climbing all the time on Google.
The other issue is new comers. Had one a few weeks ago who piled in a No1 with no history. Rang him up in the end to ask how it was going. Told me he wasn't getting much but it wasn't costing much either. Told him he must be joking, he had to be spending at least £200 per day. He said he'd check with his agency - he's no longer advertising but it put the cost up for us all.
I just need to work out if the cost of working on Google is around £40 per order or around half of my GP.
If it is I'll need to amend my plans accordlingly
I've amended most adverts to feature a best price and the min order qty to prevent non target audience clicks. Started using price ranges so users can see we provide from low cost to high end items.
Use a full range of keyword variations and break poor performing ads out into own ad groups so they can be fine tuned.
The principle issue is the cost, it's just climbing all the time on Google.
The other issue is new comers. Had one a few weeks ago who piled in a No1 with no history. Rang him up in the end to ask how it was going. Told me he wasn't getting much but it wasn't costing much either. Told him he must be joking, he had to be spending at least £200 per day. He said he'd check with his agency - he's no longer advertising but it put the cost up for us all.
I just need to work out if the cost of working on Google is around £40 per order or around half of my GP.
If it is I'll need to amend my plans accordlingly
AJ your from North Wales 
You should come on my next hoon around the big country - should be end of march.
What type of business are you in?
The other issue I have with Google is the small order volumes. The customers tend to be small business or agencies looking to buy at the lowest price.
I have feeling that my industry isn't ready for the internet yet.
I know it sounds odd but customers in my sector might still be acustomed to traditional catalogues and don't use the internet for larger orders. The market online might be smaller than everyone thinks!
I have an idea that the first guys with websites did well and then everyone piled thinking it was all going online. That leaves everybody with a web site fighting over a small market that is pushing up Google Adwords costs. New guys appear and assume the top adwords companies are creaming it and bid accordlingly to find there is no market.
In essence everyone is selling online except the customer is buying offline.
You should come on my next hoon around the big country - should be end of march.
What type of business are you in?
The other issue I have with Google is the small order volumes. The customers tend to be small business or agencies looking to buy at the lowest price.
I have feeling that my industry isn't ready for the internet yet.
I know it sounds odd but customers in my sector might still be acustomed to traditional catalogues and don't use the internet for larger orders. The market online might be smaller than everyone thinks!
I have an idea that the first guys with websites did well and then everyone piled thinking it was all going online. That leaves everybody with a web site fighting over a small market that is pushing up Google Adwords costs. New guys appear and assume the top adwords companies are creaming it and bid accordlingly to find there is no market.
In essence everyone is selling online except the customer is buying offline.
It's my intention to add a buy online functionality - I've got the card processing set up but the I had to prioritise developments.
Building a web presence was the first 'Must Have', followed by adding products. At the beginning in October there was only one site offerring full ecommerce but this has changed in the last few weeks.
Loading products was initially done manually but I've now moved to bulk importing. Obtaining clean data from suppliers has been difficult. The big issue in create full ecommerce has been the delivery costs as suppliers in the main don't have the data available.
Another diificulty is deciding how long an adgroup can run without a sale. If I am expecting a 50% Gross Profit CPA at what point do alarm bells sound on an group with no sales?
I've had noticed that one one the major does tend to position their ads around position 6 insted of battling for top ranking.
Coyft would you mind dropping me a pm with the name of the company you met. If it's the one I am thinking of, it was either a Richard or Gareth you talked with.
Building a web presence was the first 'Must Have', followed by adding products. At the beginning in October there was only one site offerring full ecommerce but this has changed in the last few weeks.
Loading products was initially done manually but I've now moved to bulk importing. Obtaining clean data from suppliers has been difficult. The big issue in create full ecommerce has been the delivery costs as suppliers in the main don't have the data available.
Another diificulty is deciding how long an adgroup can run without a sale. If I am expecting a 50% Gross Profit CPA at what point do alarm bells sound on an group with no sales?
I've had noticed that one one the major does tend to position their ads around position 6 insted of battling for top ranking.
Coyft would you mind dropping me a pm with the name of the company you met. If it's the one I am thinking of, it was either a Richard or Gareth you talked with.
Gassing Station | Business | Top of Page | What's New | My Stuff