Calculate the Impact of PPC Optimization

• How much do you pay per click?
• What is your conversion rate?
• What percentage of your revenues com from Adwords?
• What would happen to your revenues and profits if you would lower your average Cost Per Click with xx %?
• What would happen to your revenues if you would increase your conversion rate with 20%?

1. If you are obsessed with the first position, and you´re willing to let go of that obsession, you may achieve a reduction in CPC of as much as 60% or even more.
2. If all your ads and keywords link to the home page of your site you may achieve an impressive increase in conversion rate. Even though conversion rates are more difficult to predict, in this situation try working with a change of 100%. A 100% increase in conversion rate means you´re selling twice as much as before.
3. If you use very few keywords, you may achieve a much lower average CPC and higher conversion rate.
4. If you feel like the above 3 points do not apply to your account at all, your expectations should be moderate and it is perhaps time to find out more about landing page optimization and testing.

I wrote a tool to do some calculations on what to expect when you optimize your Adwords Campaigns. It will save you a lot of time in creating an excel sheet...

Please check it out and post your feedback. I'm still looking for ways to improve the tool. What kind of information is missing for example?

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