Revenue per Click: The Secret to Maximizing Profit
See why this metric is so important to your business and how you can leverage it to grow profit!
Accurately calculate revenue per click;
Interpret RPC with the context of other performance metrics;
Understand trends in campaign data, and what that means for your advertising strategy; and
Calculate the CPC adjustment needed to make a campaign profitable using current metric data.
Ready to Use Revenue Per Click to Grow Profit?
Leverage Revenue Per Click
In profit-driven marketing, data is key. After all, that’s why we manage accounts to profit in the first place – because it’s the only metric that accounts for both efficiency and sales volume.
On a more granular level, creating profit in marketing campaigns involves tracking and understanding a variety of metrics. There are the basics, of course, like sales, conversion rate, revenue, and cost-of-goods. But there are a handful of other metrics that offer a wealth of insight into the profitability of campaigns and possible improvements. That includes the subject of this whitepaper – revenue per click.
This metric is pretty self-explanatory: it’s the amount of revenue generated by the average click. Trends in this metric offer a lot of insight into campaign performance. If more revenue is created per click, you may be able to justify an increase in spend (assuming cost doesn’t get out of hand!) On the other hand, a reduction in revenue per click often means spend needs to be reallocated to more productive campaigns or ad groups. With the right analysis, you can use RPC data to discover the bid adjustments needed to grow revenue and profit in your campaigns.
If you can accurately track and interpret this metric and others, and use that data to implement strategies that will improve campaign performance, you will grow revenue, and increase profit. Read on to see how!