SEM & Adwords: How many click without a sale before i should pause a keyword
- by Thomas Jönsson
I wonder how many clicks I optimally should let pass through every new keyword I try in Adwords before I find out that it's not making a profit and it should be paused!
It's actually four question.
1: At which likelihood percentile should I pause a word?
2: How many clicks should I let through before I pause a word for those word which do not generate any lead?
3: How many clicks should I let through after one sale to consider the word not to be profitable?
4: Does the likelihood of the word becoming profitable affect the above?
Conditions:
-The clicks is normally distributed. (correct?) -A CR of 1% is break even, everything above is profit (1 sale/100 clicks=break even) Cost
per Click(cpc) = 4$
-Marginal (profit per sale) = 400$
-Paybacktime = 1 year
-Average click per word = 0,333 per day (121 + 2/3 per year)
Exampel:
After 1 click and no sale the keyword still has a high probability to be profitable. After 500 clicks and no sale it has almost no likelihood to not be profitable and should probably be paused.
Thanks in advance!
