30 Dec '15, 4pm

Profit Driven PPC Management in Practice: From CPM to Profit Optimization

Profit Driven PPC Management in Practice: From CPM to Profit Optimization

There are many theories about the optimum frequency capping that advertisers should use. These theories usually say that the “best” frequency is between two and five times per unique user. However, if we measure the ad efficiency using CTR, a metric that measures the grade of the users’ reaction to the ad, we usually can see that to a unique user each subsequent impression has a smaller impact. The example reach and frequency report from Google AdWords (Display) shows that the CTR decreases with every impression. Lowering CTR causes increasing of CPC. The efficiency of the campaign decreases, and we have lower and lower response. The “unit price” grows.

Full article: https://www.semrush.com/blog/profit-driven-ppc-management...

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