questions on investing into PPC to collect data

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clownstep

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Mar 7, 2008
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I've been reading about how it's important to gather data when you start your PPC campaign and this means that you'll end up losing in the beginning. I am experienced in PPC but, I've always bid in small amounts around minimum bid and targetting long tail. Which has worked pretty well but, I'd rather have a few high performing campaigns instead of a whole bunch of low performing campaigns.

I don't want to lose too much at first since this is the first time I'm going to be doing something like this. Usually when I bid at minimum bid, if the offer doesn't convert by the time I reach the payout and don't get a conversion then I'll move. I'm starting to notice that I might need to make the initial investment to collect data.

I'm thinking to invest $500, I've already researched my competitors my offer is a better deal than the majority of the people promoting in this niche. There's only 1 or 2 people promoting the same offer and they're only in broad high traffic keywords.

I've also tested this offer at minimum bids for a couple months including split-testing and seems the lower payout offer is converting better. So, I have 2 offers to split-test. I didn't lose money but, I didn't make that much. Maybe a 50% or less ROI?

If I invest $500, my questions are,

How many keywords should I start with?

How much should I bid?

How many clicks should I give each keyword?

One of the offers has a payout of about $10, and another has a payout of about $15. I've heard that you should set your max bid to 1/3 of the payout? So about $3 for the $10 offer and $5 for the $15 offer?

If my max bid is $3 and I give each keyword 100 clicks, I'll rack up $500 really quickly.

So what would you advise? Give each keyword 10 clicks? a 1:10 conversion rate. That means I can only test about 15 keywords. Or should I test more keywords and increase the conversion rate to 1:4? I'll have about 40 keywords to test with but, 1:4 doesn't sound like it's good enough.

Maybe I don't have enough money to compete in this niche?

If not, can you answer the questions above about your recommended variables when starting a new campaign?


Thanks
 


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