Calculating the maximum cost per click and the sincere bid in Yandex.Direct
Posted: Tue Jan 28, 2025 7:18 am
Maximum bid.
The maximum allowable rate is calculated as follows: the profit from the sale of one unit of goods (services) is multiplied by the conversion rate. In the example where mobile phones professors edu email addresses are sold, the conversion is 2%, that is, two visitors out of a hundred become buyers.
Thus: 3,000 rubles x 2% = 60 rubles.
It seems to be not bad. This is an average bid, and if it is acceptable for the company, then your ads will be shown more often than the competitors, and it will not be so easy to get ahead of you.
A sincere bet.
However, you have learned the maximum permissible price per click. Now the Yandex.Direct advertising setup specialist you hired must achieve an even lower bid cost without reducing conversion.
Experience shows that it would be good to reduce the breakeven rate by 2, 3, 5 or even more times. Do not forget that the company has many expenses and it is necessary not only to cover them, but also to earn a profit. So in most cases, the honest rate is approximately 20-30% of the calculated maximum.
Again, in the example with phones, even if you take half of 60, it is 30 rubles. With such a cost per click, it will be very difficult to overtake competitors and reach the top positions in search results.
The maximum allowable rate is calculated as follows: the profit from the sale of one unit of goods (services) is multiplied by the conversion rate. In the example where mobile phones professors edu email addresses are sold, the conversion is 2%, that is, two visitors out of a hundred become buyers.
Thus: 3,000 rubles x 2% = 60 rubles.
It seems to be not bad. This is an average bid, and if it is acceptable for the company, then your ads will be shown more often than the competitors, and it will not be so easy to get ahead of you.
A sincere bet.
However, you have learned the maximum permissible price per click. Now the Yandex.Direct advertising setup specialist you hired must achieve an even lower bid cost without reducing conversion.
Experience shows that it would be good to reduce the breakeven rate by 2, 3, 5 or even more times. Do not forget that the company has many expenses and it is necessary not only to cover them, but also to earn a profit. So in most cases, the honest rate is approximately 20-30% of the calculated maximum.
Again, in the example with phones, even if you take half of 60, it is 30 rubles. With such a cost per click, it will be very difficult to overtake competitors and reach the top positions in search results.