Acceptable ROI?

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Rob_TID

Rob_TID

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Jun 24, 2006
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When do you guys usually think you are spending too much to make too little net profit?

I usually aim for a minimum of 100% ROI, but if there is significant volume I will let it go to about 50%.

Of course, most campaigns I let run are much better than that.

But what does everyone else think the minimum ROI should be (in general) before they think it is too much hassle to keep the campaign running?
 


It obviously depends on the level of actual income that is resulting from that ROI. I'm with you on the 100% ROI in general. Going down to 50% means that there should be pretty large amount of income coming from it, the risk has to be low since there's not much room for error. If the current amount of cash isn't cutting it, it's got to be scalable or it's time to move on to the next idea.

I think this question will be different for everybody based on their expectations and the situation.
 
I'm fine with 50% ROI at this point - sometimes I go even less. Once I get a little more into this I may change my mind but for the time being profit is profit is profit :D
If either of you have any "under performing" campaigns you've turned off feel free to send em my way ;)
 
You start with anything positive, then try to beat it with your next campaign.

I use 100% as my goal. You can't get those kind of returns in the real world consistently...look at average stock market returns...LOL
 
My ROI floor is 30%. Anything below that draws my attention.

As a side note, I actually consider ROI on the keyword level before the campaign level. So, any keyword with an ROI below 30% gets my attention.

That way, if I have "money pit" keywords that are holding back a high-ROI campaign from an even higher ROI, I can easily identify the dead weight and make changes.
 
Trademark said:
My ROI floor is 30%. Anything below that draws my attention.

As a side note, I actually consider ROI on the keyword level before the campaign level. So, any keyword with an ROI below 30% gets my attention.

That way, if I have "money pit" keywords that are holding back a high-ROI campaign from an even higher ROI, I can easily identify the dead weight and make changes.
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Good point. I usually make sure my campaign is optimised at the keyword level and take into account ROI after that point in time. It's laborious but it's worth it.
 
I shoot for at least 100% ROI, but as long as I'm making profit, I am happy. The rest is just details. I guess as long as you're not taking a loss, you should continue to run campaigns. Money is money, and it adds up fast.
 
I cut off my keywords when they reach their max spend which depends on the targeted roi and target conversion rate, (or real conversion rate if it's available). I guess that's pretty much the same as the roi, except I don't need to do any further processing besides looking at the all time expense numbers for each keyword.
 
100% for the US market, or 75% if I can get substantial volume going. Minimum 200% for German campaigns.
 
I am happy as long as I make some profit. I would be a lot happier though if I was making 100% ROI.
 
As long as it's in profit I'll let it run. I recall a good point Paul made on his blog before that he'll let campaigns run even if they are just breaking even. If you have a good points/cashback card why not?
 
100% is an overall goal for me, but I'll realistically take anything that beats the stock market. If a campaign is becoming too much effort for the return (disproportionate to other campaigns), I'll consider killing it.
 
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