Content Providers' Bid for Traffic

The calculation of the Pay Per Click return on investment for content providers is necessary to generate a particular amount to bid. How much will you bid in a pay per click campaign? It is essential to understand this to avoid losing a fortune on ad campaigns.

Bidding Computation

Determining the amount of how much to bid in PPC campaigns need a simple mathematical calculation. First to identify is the revenue per page. How will you arrive on this figure? Let us divide the process into simple steps.

• Identify the average CPM of the ads included in the site.
• Multiply the average CPM by the number of ads on every page.
• Divide the product by a thousand.

To better understand the steps, please see the formula below:

Revenue per Page

To get the amount to bid for, you need the revenue per visit. The formula is as simple as shown below:

Revenue per Visit

Given below values, see how you can arrive at the amount to bid:

In the formula shown above, you can assume that the maximum bid should be .56. Now what does this figure imply? It all lies in your PPC techniques. Given the figure .56, you can bid on a lower amount, thereby giving you enough profit. How? See formula below:

Profit:

So, say you bid for .30, you will have a profit of .26. This is good revenue to continue an internet business.

More profit means better business stability. Find out how to gain impressive profit from your site, please see our PPC Services or apply for a free PPC analysis.