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pricing for clients

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello there 

Im opening my new online advertising agency and i would like to know how to price for customers. Ive dealt with adwords but i have never priced ads for customers. usually customers ask about the price for a certain number of impression within a certain time period. 

 

So basically what strategy should i use to deal with their requirements 

 

thanks alot 

1 Expert replyverified_user

pricing for clients

Top Contributor
# 2
Top Contributor

Hi Ali,

 

If you are talking about display ads, I use 0.5% CTR as a rough guess, so would tell them that every 200 impressions would cost them one click, and a click is probably in the range of $1 to $2 (here in Australia).

 

Then just extrapolate that to fit their budget.

 

For search, a CTR of 3% works well for estimates, and the keyword planner can give estimates of click cost and volume.

 

And then make it very clear that you are only providing rough estimates, and that AdWords is a dynamic system and it is full of competitors all after the same piece of the pie.

 

pricing for clients

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

200 impressions or 500 ??

 

thanks alot 

pricing for clients

Top Contributor
# 4
Top Contributor

1% CTR from 200 impressions would be two clicks

0.5%  CTR from 200 impressions would be one click

 

I try not to talk in terms of half-clicks Smiley Wink

 

pricing for clients

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

then please correct me if im wrong 

lets assume that my cost per click based on a previous campaign that i did was 0.26$

the customer would want to reach 4000000 impressions 

i would have to divide 4000000/200 = 20000 clicks

then i multiply 20000 by 0.26 = 5200 dollars ??

 

and that would be my cost ??

pricing for clients

Top Contributor
# 6
Top Contributor

That is correct.

 

If the previous campaign has a similar topic / ad / targeting, then I would use the CTR from that campaign for working out the estimate...