Cost Per View is one method you can use in order to calculate the amount that a PPC campaign is costing you. This in turn can be a useful way to gauge your ROI and to make plans going forward. This post will show you how to maximize ROI using this number.
In internet marketing, CPV refers to ‘cost per view’, which is the amount that you pay as an advertiser every time that someone views your advert with regards to pay per click advertising. This number can be calculated in one of two ways. Either, this number will be based on the average number of clicks that you get on each ad and how much each of those clicks costs you. For instance, if your add shows 1,000 times, gets clicked 10 times and costs $1 every time, then that means that you paid $10 for 1,000 views. The cost per view therefore was .01cent.
At the same time though, this number might also be related to your CPM which is the very small amount that you are charged each time someone looks at your ad. This stands for cost per mill but really means cost per 1000 impressions. Finally, this number might be calculated based on a combination of these factors.
One Technique for Increasing Your ROI
To increase your ROI, you need to sell more, while lowering your CPV.
Split testing is a business technique that sees businesses running two separate advertising campaigns/products side by side and making small iterative changes to one. This way they can then test which changes are successful and which are not, and then roll out the successful ones across the board. So, if you if you were running one ad campaign, you might try altering the font slightly across 10% of the adverts and then monitor how they perform. If they are successful, you then enforce those changes across 100% and introduce a new change to your 'B' campaign - in other words taking
advantage of the immediate nature of a PPC campaign in order to evolve it to the point where it's fully optimized for maximum efficiency.
Find more statistics at Statista
Other Uses for Your PPC Campaign Keyword Research
Another way to raise your profits from your PPC is to use it indirectly.
PPC is in itself a great way to gain exposure for a website and to get seen by a lot of visitors, but it can also be a powerful supplement to other forms of marketing - and in particular SEO. When you use SEO to get to the top of the SERPs, you will spend a large amount of time working to get your site to the top for a particular search query, meaning it's important that you choose the right term. You might use Google's keyword tool in order to find which terms are popular, but you can't know for sure that those popular terms will also bring you high quality traffic that results in a high conversion rate.
By using PPC then you can get a 'sample' of what it's like to be at the top of that page, and compare your profits across a range of different keywords. That way, if you're investing in SEO too, you'll be able to know from first-hand experience which the best terms to gun for are and avoid wasting any time.
This way, you are only going to be charged for your CPM for a short period of time. The organic results at the top of the SERPs (search engine results pages) will give you permanent positions there that don’t cost you anything to maintain!
And Finally
There are many more ways to maximize ROI in light of CPV. These include:
- Making sure your ads are highly targeted in terms of who sees them
- Making sure your ads are highly targeted in terms of their design and copy
- Making sure that the landing or sales pages are highly optimized for conversions
