Is there a certain profit margin you should have for PPC internet marketing?

I have an online store and the profit margin on various items range from about 20-0. I have heard PPC advertising does work, but I have tried it with my store and it just did not work out.

This entry was written by eranio, posted on July 1, 2009 at 8:17 am, and filed under PPC and tagged .

5 Comments

  1. Jim S
    Posted July 1, 2009 at 8:17 am | Permalink

    Good question… As one who consults companies on PPC I can say that if you are spending $10 with PPC to make $20 profit then you should keep doing your PPC.

    It’s simply a matter of maths. If you are making money from PPC and coming out ahead then why stop.

    The thing is to better your conversion on your split testing of your ads and working on your CTR (Click Through Rate) I never settle for a click through rate under 5% and quite ofter get 10% to 15% with most campaigns.

    I have used what I think is the absolute best guide to learning internet strategies… it’s a free guide. They can be found at http://www,internetmarketingsbestfreeguide.com.
    The course does have a secrion on PPC and it was the best learning overall I ever had.

  2. Lisa S
    Posted July 1, 2009 at 8:17 am | Permalink

    The profit margin has nothing to do with the ppc company all they do is send visitors Your profit margin depends on how well your site is set up.

  3. jwserra
    Posted July 1, 2009 at 8:17 am | Permalink

    Well it really depends on what niche your ecommerce site falls into, but PPC will work when done the right way. I would suggest you either read more about it on the web, but their is quite a bit of BS that you will have to sort through. One of the better resources I have found over the years is Perry Marshall’s Definitive Guide to Adwords. Whether you are using Adwords or another PPC service the information in his book will get you way past up and running.

  4. David C
    Posted July 1, 2009 at 8:17 am | Permalink

    The real question is, what return do you need to make on your marketing investment to justify the cost? Margins are far less important than your overall ability to generate a reasonable return on your investment.

    Your goal is to optimize your PPC campaign for the best return, but as long as your making money, your in the right ballpark. Just focus on what works, and ditch what doesn’t.

    Got other marketing questions? Let me hear them at http://www.askasimplequestion.com.

  5. Jennica S
    Posted July 1, 2009 at 8:17 am | Permalink

    I think SEO forums or marketing forums that deals with PPC campaign to answer you question.