How to increase AdWords investment conversion rate

Increasing the ROI of AdWords is an ultimate goal of AdWords advertising.
Let's discuss this issue. First, let's look at the first question. How can we calculate the AdWords advertising cost?

Calculation formula for average click cost of Google Adwrods ads:

Commission for each product * Merchant's webpage conversion rate = average click cost of Google Adwrods ads

Assume that one of every one hundred visitors will purchase a website, that is, the conversion rate is 1%, and the sales volume is 100 yuan. After deducting all costs, the profit is 30 yuan, which can be calculated, the expected value of each visitor is 0.3 yuan. That is to say, the maximum cost for each click is 0.3 yuan. This is a calculated theoretical value.

Next, let's look at the ROI calculation formula:

Net income resulting from current advertisements-current advertising fees)/current advertising fees * 100%, for example:

The total advertising amount for an advertisement is 4000 yuan, and the sales revenue generated by the advertisement is 20000 yuan. If the various costs account for 70%, the net income is 6000 yuan, advertising ROI = (6000 yuan-4000 yuan)/4000 yuan * 100% = 50%

Then there are doubts about how to improve the ROI of AdWords ads.

Through the above computing analysis, we can see that the main work is as follows:

1. Reducing PPC costs is actually optimizing your account

2. To ensure product profit, you must select a product with a large profit margin.

3. Optimize the advertising language to better reach your target audience

4. Optimize the advertisement page to improve the conversion rate. It mainly highlights product advantages in its own pages.

The theory is very simple, but in practice, it is far more complicated than this. Therefore, we need to practice more when learning, so that we can make better results.