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Acceptable cost factor

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hey pro's!

 

I am concerned about the cost-efficiency of the Adwords-Account I manage. The monthly Adwords-costs are from 22% to 39% of the overall conversion-value. Is this acceptable? Is there something like an average value to say about if the campaigns going well?

 

Since I am new to this business, I don't have a feeling for what rates are acceptable or which not.

 

Thank you!

1 Expert replyverified_user

Re: Acceptable cost factor

Top Contributor
# 2
Top Contributor
Hi Chris,

If I am reading your line okay, that's very good. In the worst case (39), ROI will look like this:

ROI = (Gain-Cost)/ Cost = (100-39)/39 = 156% which is very good if it is stable.

Note that benchmark values may vary with your industry or niche and such data are mostly regarded as confidential.

Best,
Lakatos