The Economics of Online Marketing

Returning to the previous example, that retailer may be able to afford an average 45 cent CPC across her portfolio. But many of her ads wouldn’t meet her efficiency target even at a penny per click, and a handful of her best ads easily would beat her A/S target, even at several dollars per click.

With online PPC advertising, the devil (and the profits) are in the details. Make sure your programs are managed at the keyword level, with smart bidding adjustments for copy, landing page, seasonality, time of day and day of the week.