Contextual advertising

The first thing to start with, if you are thinking about using contextual advertsing, is pre-analysis of future advertising campaign. It's very easy to spend all the budget wwith no results, but it can also be easily prevented. You should start with max. currency on click. To do so, use this formula:

Max. price per click = Conversion X Margin X Possibility of deal completing X Average bill.

Conversion varies from 0.5 to 2% in a store. Count according to the lowest possible number.

Margin a sum you earn frm every sale. Don't mix it up with extra pricing.

Possibility of deal completing is usually 80% (but we'll use this number as an example, because everything is individual in every single case).

Average bill is a earned sum of all completed deals, devided by its quantity.

So, if you sell products with 30% margin, your average bill is USD 100, conversion is 0.5%, we get:

Max. price per click = 0.005 (0.5%) X 0.3 (30%) X 0.8 (80%) X USD 100 = USD 0,12

This way, with a price of USD 0,12 you'll the same money, you spend on advertising and generally earn/spend nothing.

To find out effectiveness of an advertising campaign, I advise you to our Excel table with formulas. It allows to distinguisg max price per click, number of potential leads, price of lead, price of a deal and profit of advertising campaign.
Contextual advertising starting steps

Semantic core

  • Gathering request
  • Calculating max price
  • Deleting expensive requests
  • Distinguishing stop-words
  • Grouping request

Start of advertising campaign

  • Uploading ads (importing from table and checking)
  • Starting of ads demonstration (step by step with monitoring)

Gathering stats

  • Google Analitics (integrating counter, configuring targets)
  • Google Search Console (for finding and fixing errors)
  • Facebook pixel (gathering targeting fr future use)
  • Other individual requests

Анализ рекламной компании

  • Проверка ключевых показателей эффективности
  • Корректировка (удаление слабых объявлений, удаление слабых ключевых слов)
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