Calculating The True Cost of Your PPC Campaign

PPC - Pay Per Click

A click, a conversion, a sale, a nice profit; add all the sales up at the end of the month and deduct what you spent on clicks; voila! Well, that’s what it looks like if you aren’t calculating the real cost of your PPC campaign. It isn’t quite as simple as that, and there are a few things you need to consider to make sure your accounting is accurate.

1.   Credit Card Rejection

Make sure you look at all the transactions that were denied by banks throughout the month. You need to find a way that your system can cross reference each one and determine whether it arose from a PPC click. Often businesses count the sale, not thinking twice about tracing possible rejections, which can occur up to 48 hours later.

2.     Order Returns / Exchanges

Again, if you have a return/exchange policy of 28 days or more, you will need to adjust your ad spend figures for the previous month, as they will be affected by returns and exchanges.

3.     Order Changes Via Phone

The original order may change by phone rather than via cancellation and reorder through the system, and while the change may be logged in the system, it won’t filter down to you when you are calculating your ad spend. Ideally your system should be automated, so that when an order is changed, if it came from a PPC click, it will then automatically adjust your ad spend accounts.

4.     Cancellations

If you are a one or two man show, it is easy to forget cancellations in busy periods. Make sure you pull up a list of cancelled order when calculating your monthly ad spend. One or two cancellations could be the difference between your campaign being in the red or black.

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