Last week I calculated the return on investment (ROI) of a large CPC campaign over multiple engines for a startup I am currently working on. I realized that I dont check the ROI often enough, and none of my colleagues at other startups seem to either. When your startup is profitable and you have been using the same marketing mediums over a course of half a year, you might get a little “lazy” on optimizing your marketing through ROI.
I work on multiple startups and with many internet marketers that handle the daily tasks at these young companies. As I learn new tactics and methods I try to pass them on. Unfortunately, the common tasks that should be completed on more of a monthly or quarterly basis slip through the cracks.
How often should you (and I) check return on investment of cost per click campaigns?
It is a loaded question. It really depends on how active you are in updating and adjusting your CPC campaigns.
If you update your CPC campaigns weekly:
- You are probably updating too often to get a good idea of what is working. Although you should check the ROI on the campaign if you have enough data to do so.
If you update your CPC bi-monthly:
- This should be the minimum length to test a CPC campaign. I often take all the relevant data and double it to gauge what activity this campaign would see in a typical month. On top of ROI, the clicks, sign ups (or your ultimate conversion stat) and cost over that month should be presented to the team.
If you update your CPC monthly:
- Unless you make major changes over the course of a given month, you probably only need to check your ROI once a month or once every two months.
You always have to watch your position and competition when using CPC as a marketing tool. Anytime CPC increases or you see a decrease in revenue you need to recalculate your ROI to make sure each campaign is still within your given tolerances.
Remember to not fear negative ROI. Producing volume can be more important than positive ROI (within reason) when a startup is trying to gain tracking. That will be an article for another day.
