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Posted On: 28 Oct 2013

How to Calculate the Value of an Adwords Campaign

Adwords is a useful campaign medium for getting traffic to your website. However, for it to be successful, it is essential to have a clear picture of the results you want to achieve.  Getting traffic to your website is only part of the strategy and the cost you need to pay to get people to your site will vary depending on the result of their visit.

You need to decide how much each visitor is worth to you based on the actions they take when they land on your website. Do you want them to buy a product, sign up to your newsletter, or visit your store?  Each action has a different value and deciding how much to pay per click, includes knowing how much each conversion is worth.

Can you answer the following questions?

  • What is your conversion rate – how many visitors buy something or sign up to your list?
  • What is your ideal cost per conversion – if each conversion results in a sale how much is that worth?

Find out how to calculate the cost per conversion for your adwords campaign by downloading our Adwords case study.