The major objective of proposal optimization is to determine the keyword level proposals that will result in one of the most lucrative conversions for every search phrase.
Consequently, to bid properly, you must have conversion tracking established in your AdWords account to ensure that you’re determining conversions at the keyword degree. Do that right now if you haven’t already set it up, and after that, come back after you start seeing conversions in AdWords.
Warning: This will require some basic math. If you hate mathematics, as well as numbers, scare you, then do not panic. I guarantee to keep this straightforward.
Right here’s an overview of what we’re most likely to do:
- Find out how much you will be able to pay from the profit you make for a conversion. This will depend upon your service, your consumer lifetime worth, and exactly what you’re calling a conversion, shopping sale, telephone call, demo demand, etc.
- Calculate the rate of conversion for each search phrase using conversion tracking in AdWords.
- Determine your optimum cost per click, which is the maximum you can pay for a keyword.
Here’s an example of how this function
Let’s suppose that you have found that you can pay $100 for a conversion. Let’s additionally state that you have a keyword phrase that has a 2% conversion rate. To discover your optimum price per click, you can merely multiply the conversion price by how much you can afford to pay. In our example, we would increase by 2% by $100 to get $2.
That indicates we can beneficially pay up to $2 for this keyword.
Keep in mind that this computation requires to be done independently for every search phrase since your keyword phrases will likely have various conversion prices. For more advanced online marketers, you might acknowledge the fact that the lifetime worth might differ per key phrase which’s true. For advanced proposal optimization, you must utilize the different conversion rates and various maximum quantities you can afford to pay for each key phrase.
If you are beginner, you can seek help from AdWords Services [jasa AdWords, which is the term in Indonesian]