As PPC Managers you have to know your clients business inside and out. What are the average order values for different products, what are volume products and what are value products. What are the margins associated with profit. These are all important questions when managing campaigns.

For example, a client may have a £7 per enquiry through PPC but only closes 1 in 10. With the average sale value being £120 then the client is only making £50 on each deal. This is a very simplistic model because some products may be repeat business. For repeat business, like ink cartridges for example, the cost per acquisition of first time buyers is not worth it because you are at a financial loss, however the average customer will order another 10 times more making it very profitable. It is important to know these things as this has a big influence on the way PPC account are managed. Here are a few stats that aid in managing ROI within the retail sector:

1. 89% of people regularly browse or research before buying offline. Only 7% of retail purchases occur online.

2. Online advertising drives in-store revenue.

3. For every £1 that is spent online through ecommerce, £6 is spent offline through bricks and mortar location.

4. Search advertising only increases the offline lift of revenue by 43%, and display advertising only lifts it by 15%. However the most effective method is combining both which leads to a 90% lift in revenue.

Overall, by doing display and search advertising, you will exponentially increase offline revenue.

Thanks to Yahoo Search Marketing for the research.

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