What Returns Can Your Business Expect From Pay-Per-Click Campaigns?

Find out if pay per click campaigns could yield good returns for your business

All pay per click campaigns should leverage well-crafted marketing messages. Subsequently, this will generate the reader’s interest and, assuming your website is of sufficient quality, provide for revenue growth.

We know that many business owners are concerned that their investment will not bring the desired results. This is usually due to past experiences or opinions they heard from their peers. To help you decide whether digital pay-per-click marketing makes sense for your business, we have a developed a handy ROI calculator. This tool will allow you to estimate what kind of returns you can expect from pay-per-click campaigns. It works for two of the most popular channels: Google and Facebook. Click here to download it – it’s free!

In order to use the tool correctly, you need to work out two things first.

The average lifetime value of your customers

Ask yourself this: how much is an average customer worth to my business? To provide an accurate answer, you need to consult your sales data and check how often and at what frequency your customers return. For example, if you sell pet food online, the average value of a purchase is $75, and a typical customer keeps buying from you once per month for two years, then the value of one new customer is $75 x 12 months x 2 years = $ 1 800.

Your conversion rates

At what rate do your customers decide to buy from you after taking the penultimate step in your sales process, be it book a meeting with you, subscribing for a free trial, adding your product to the cart or something else. Here’s another example that will help you estimate this. Let’s say you offer recruitment services and you know from past experience that approx. 33% of sales meetings are successful, i.e. your customer decides to order from you (BTW, 33% is a good assumption for the B2B industry in general). This means your conversion rate is 33%, and if your ad leads to a landing page that encourages prospects to book a meeting with you, then this is the number you should use in our tool.

But what if you don’t have precise data at your disposal? If that’s the case, then you have two options.

1.Use existing information as a basis for making assumptions.

2. Do a bit of research to check if data that is specific to your type of product and industry is not available on the internet.

Don’t worry if accessing these figures is troublesome. Each campaign should start with a low-budget test phase, so you should have an opportunity to collect enough data for such calculations before you need to commit to a long-term digital investment.

Our calculator is based on the average campaign performance per industry that we sourced from articles on WordStream such as this one.

These are averages, your digital campaigns should actually do better than the numbers the calculator returns. Download the calculator now or use our interactive calculator below to see how your campaigns should perform for you.