How Much Should I Pay Per Click?

Nico Brooks

February 27, 2011

How Much Should I Pay Per Click?

A while back, I wrote about setting paid search bids based on ROI. Since then, we’ve been working on a number of CPC Facebook advertising campaigns and have found that the topic of bid setting continues to be important and challenging to online marketers.

With this in mind, we recently created the CPA Bid Calculator.
CPA Bid Calulator

The calculator takes some of the concepts described in my previous post, and makes it easy for marketers to apply them when making budget and bidding decisions. It is primarily intended to give marketers a better feel for how conversion data can (and can’t) be used to set optimal bids.

Have a look, kick the tires. Is it useful? What features would make it more useful? I’d love to hear your feedback.

I will add the disclaimer that I am not a programmer, so I was definitely learning as I went. We plan on working on more tools to help with optimizing online marketing campaigns. In particular, my friend Dusty Candland and I are talking about creating a free, open-source bid optimization toolkit, and he is a programmer, a damn good one to boot. We worked together at several companies building bid optimization tools, and have some ideas for how to improve that mousetrap. If you like this idea, please let me know in the comments below, or on Twitter or elsewhere. We’d love it if other people wanted to work on the project too.