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Advertising on Google: The High Performance Cookbook by Kristina Cutura

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Predicting if AdWords will be profitable and calculating potential returns

Use simple math to figure out how many clicks you can get with your target AdWords budget by reviewing average CPCs for your industry. You can take this information a step further by taking into consideration your current conversion rates to figure out what types of returns you can expect from AdWords.

Getting ready

First, understand average CPCs for your target keywords by following the steps outlined in the Analyzing budgets and bids to determine market saturation recipe.

How to do it...

  1. Once you know the average CPCs for your keywords, pick a budget that you're considering testing AdWords with. Next, you can calculate potential returns using some assumptions about conversion ...

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