Bidding

This printer is slightly cheaper than the average on his site, so I’m guessing that he’ll make about £18 on this printer, and my experience suggests that he’ll get about a 2% conversion rate (remember that this is a first attempt - I can always change the bids if these numbers are wrong), so his break-even cpc would be £0.36. So I start out at £0.30 (with a view to getting an actual cost of £0.25 per click), figuring that this will give a decent profit per click, and should get a decent position, generating plenty of clicks.

For other printers, the profit per sale will be different, so you should set the bids accordingly, if possible. Then again, the conversion rate will also be different, so these bids will all change anyway. All you’re really trying to do initially is to get your advert in the right sort of place.

Page last updated by Steve Baker on May 11, 2008 at 7:11 pm.

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