General questions about Adwords and PPC

[prm]

Hey guys,

I got some questions about PPC and AdWords,

1/ I'm working for a video games publisher, do you think that it could be interesting to do an AdWords campaign for a video game? If yes, why?
2/ Is adwords doing some CPA or just CPC?
3/ About CPC, do you have an idea of the conversion rate? I know it depends of a lot of things like the landing page and so on but could you give me some range?
4/ About bidding, I want to be in Google first page but I don't know how much money I need to bet to do so, do someone has an idea how can I get this info?
5/ What's the math formula to know if you ROI is positive? The video game we're trying to sell cost $25. I think that I need to know our operating margin and CTR, unfortunately, I don't know our CTR because we didn't run any campaigns so it will be our first campaign. Is it correct that to calculate my MAX CPC I need to apply this math formula? (OPERATING MARGIN x CTR) x 100. If my CPC > Max CPC so I will lose money. If my CPC < Max CPC I will earn money. Am I correct about that stuff?
6/ About CTR, what kind of A/B testing can I do to test different ctr?

Thank you so much guys.

PRM

 

[Miguelito203]

I haven't actually done adwords, but I think you can use the free Google keyword planner tool to know how much you will most likely pay per click (assuming you use the name of the game and such). With that said, paying for adwords on a product that only cost $25 doesn't seem like that good of an idea -- unless it the pay per click is pennies and you have a really good conversion rate with some kind of sales funnel on the back-end, where you cross promote stuff to make more money or what. Keep in mind that this is just me talking from a logical perspective -- as I haven't done it. People who have might have a difference of opinion.

Joey

 

[samimnoorzaitgc]

1:- Yes you can start using AdWords, use an effective campaign to avoid throwing out your money. There are many other video games advertising via banner ads worldwide, all you need is an attractive flash animation of your video game, a short cut of your gameplay included in a flash that makes the ad more clickable!
2:- Yes they do CPA (Cost per action) but it costs you more than CPC.
3:- No Idea, just sayin' make your lading page as much attractive and relevant as you can, tell all you know about the video game's features and choose a beautiful design that is likely made similar to game's design.
4:- You'll not get in the first page if your site has no SEO value, If you start an AdWords campaign, your ad will appear in the first page of keywords you target, You should pay more than your competitors to rank higher.
5:- No Idea on this. Just sayin' if you didn't get any sale in 100 clicks, you must try optimizing your landing page again that attracts visitors to buy. It's a dangerous sign that you don't get new buyers per 100-200 clicks. So, you'll lose money this way.
6- No Idea on this. Another SEO expert might help you here.

 

[prm]

Thank you for your answers,

I still get a lot of questions

1/ There's something I definitely don't understand with CPA... What is exactly my acquisition? If my acquisition is ''A customer bought my game'' so I can have a CPA until $24 because my game costs $25. What do you think?

2/ You're advising me to use flash banner but flash banners are not displayed on Google search. You can't not even include images. That's just 3 lines of text or something like that.

3/ I used Google Keyword planner tool to take a loot at keywords. We're making an Horror game and it seems that the competition is pretty low for ''Horror game''. The suggested bid amount is $0.5. What do you think? There's an average of 350.000 searches every month related to those keywords.

4/ How can you sure that you will be the first one on the top of google page? I don't want to pay and to be at the second page or at the bottom of the 1st page.

Thank you!

 

[prm]

I got a last question, is it worth it to spend $1000 in a Adwords campaign just to test it?
We would like to test a small budget ($1000) before spending more.

is it possible and worth it?