Return of investment on spend on google adwords

[offonhols]

Hi

Running an adwords campaign for a builders/construction company namely double glazing what sort of return of investment could I expect to get on a return of £4000 per month?

I know its a million dollar question but any insight or thoughts would be appreciated, especially on tracking ROI for example in this case it's just leads via a contact form on potential conservatory, windows or doors work which would be followed up via phone and an onsite visit.

[MonicaOConnor]

I think that it highly depends on your key terms. I don't think that anyone could give you an idea of your ROI without looking at your setup. Your key terms, search volume, average sale and many other things factor into the ROI. Will return only consist of revenue or is your conversion level setting an appointment? Or gaining a phone call?

Fortunately there are tools inside of Adwords that can help you track conversions, like phone calls, or contact us form submissions. Without delving into your data it will be pretty hard for anyone to be able to give you any kind of ball park ROI figure.

[offonhols]

For example conservatories which is high volume and very competitive recently generated me 3,400 impressions, 40 clicks at a cost of £1.71 on position 2.8 with me, and the average cost of the product if it led to a sale would be around £10,000 - £20,000

[MonicaOConnor]

Did any of those clicks convert? I would think on a broad term like that, you would have a very low conversion rate.

Let's say of the 40 clicks you scheduled 20 appointments. The average Ecomm conversion rate is 2%. At the lowest 10,000 per conversion, you would earn 10,000. 2% of 20 = .4. That isn't even 1 conversion.

Now if you scheduled all 40 appointments and converted at a higher rate, you would have a higher ROI.

[Justian]

As Monica already stated it depends on various factors. The keywords you are targeting, but most of all the landingpages ability to convert visitors into customers.

I've done some work in that area

It wouldn't be unlikely to convert 2-3% on some keywords while others would be a waste of money. A perfectly optimized landingpage might do way better then these numbers, but that takes time and you obviously need to do some A/B testing. If you do a great job you might get x2 - x4 times the avg conversion (~2%)

A few tips:

• Devide your groups and ads to get the best possible quality score
• Test ads on how they perform - try to optimize as mush as you can
• Keep an eye on you CTR for keywords (higher CTR = you pay less pr click)
• track conversion rates for keywords, ads and campaigns
• Use negative keywords to filter out broadmatches that will lower you CTR
• Use ad Extensions to get a higher CTR
• Do A/B Testing of landingpages as well

[offonhols]

Thanks what is a good quality score and how do you check?

Also with negative keywords I am already using things like "diy conservatories" as this is not what I want to target, is that what you mean?

How do you get to no1 position on adwords is it just the case of however pays the most in their daily budget gets no1 spot or is it a number of factors

[Justian]

Its not always the person that pays the most that will out rank other advertisers

The formula looks like this:

CPC bid × Quality Score = Ad score (The highest scores will rank in the top)

so what does that mean? Lets say that advertiser A has a Quality Score of 8 and he is willing to pay a max cpc of 2$ that gives him a total of 16 points ( 2$ x 8 quality score) But advertiser B is willing to pay 3$ per bid but only has a quality score of 5 giving him a total score of 15.

In this scenario Advertiser A would get the top position.

The avg _Quality Score is 5.. if you do a great job with your _Quality Score you will pay less to rank, and visa versa. __

__CTR has a huge impact on _Quality Score - So make sure your ads are relevant, interesting and standing out. ___