Starting your Adwords campaign is not always profitable. There may be some factors, which define this. So, in order to avoid the expenses on such a campaign, it would be much smarter to analyze your product, to predict your advertising costs and to make the following conclusions. Here are the factors you should pay attention to.
1.Your cost per click
In PPC advertising a price per each click matters. It shows the amount of money that will be paid by you for each visitor, brought to your website. Having this value, you should move to another number.
This value indicates the number of visitors, who have converted into some result. If you are selling the products, it shows the number of sales, compared to the general number of visitors Usually the conversion rate is good when it’s equal to 0.3-0.7%. So don’t count on each second purchase.
Cost per click and the conversion rate show you the amount of money you will lose. Knowing the number of sales (or any other action), you can now count your profits. It allows you to determine, whether your advertising campaign has sense or not.
And remember, that all of the numbers you have are dynamic. If your advertising campaign is profitable today, there are no guarantees, that it will remain be the same tomorrow. So go on analysing and comparing the data further, in order to stay profitable.