google advertising ppc adwords etc

ttaylor

hi my friend has a small local business and is paying a lot of money to yell.com to manage it

the latest email he's got has the following stats:

Spend £973
CTR 5.05%
Impression share 71.23%
Cost per click £7.10

Is this OK, I know a little about computers but he doesn't, but I don't know much about ppc or google ads.

googler

Cost per click is ridiculously high.

He's paying Yell £7.10 simply for pulling in one person for one visit to his website. With no guarantee that they stay around to look at it.

It's years since I did adwords, but even so, I was looking at cost per click in the vicinity of pennies, not pounds...

PasturesNew

It sounds like there's a lot he could do to put him in a position to be able to drop them. But, the question is, what is the value of the business the site is drawing?

He should be comparing the cost of the service -v- how much time it takes him to service those quotes and how much work he gets.

If he's paying £7/click but finding that every click ends up as £100 profit for just 2 hours' effort/work .... then I'd shovel more money their way

He needs to be measuring all costs of all advertising against how much he earns from it.

It might be wasted money ... or it might be the most profitable income stream in his marketing plan.

AndyPix

That cost per click is insane !!


He must be bidding on some very popular keywords with the capacity to create a lot of money per click.


As above, unless he IS converting each of these clicks into value greater than £7.10 then he is wasting money.


Perhaps consider narrowing down the keywords

Chickabiddybex

The metric you should really be looking at is cost per sale. If that £973 turned into £100,000 worth of sales that's great! If it was only £500 then that's dreadful. It's so hard to say what's good with cost per click because we don't know how many of those convert.

bingo_bango

Late to the party but for the sake of comparison Hootsuite have released a report on Facebook stats(which I know isn't Google, but...).

https://blog.hootsuite.com/facebook-statistics/

If you scroll to #29 it has a table showing the average cpc for facebook ads around the world. UK is showing as $0.26 which is massively lower than that figure from Yell.

Your friend may want to rethink their marketing strategy if they aren't getting any return from the Yell ads. There are definitely cheaper vehicles out there.

ClarkeKent

They need to establish if those clicks are converting into sales, this can be done using it paired up with Google Analytics. Look in the Ecommerce tab of his Google Analytics (if it is setup)

I would perhaps reduce the spend by £500 or so for a month if he thinks it isn't paying off, and pay an independent, small Adwords specialist to replicate the campaign avoid the larger agencies.

Larry King who is known as the "King of Adwords" often advises that if you have a restricted budget. To spend it on "Remarketing" in Adwords. These are customers who have been to your site already and you show them ads to return etc. It usually results in low CPC and a much higher conversion rate.

In my opinion, one thing is guaranteed. If you are using Yell for any service, you won't be getting value for money