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Is a CTR of 20% good or bad? Your goal is to improve your quality score while also building a profitable campaign. Who better to explain how quality score works than Hal Varian, the Chief Economist at Google… Hal Varian , Google : “There are three components to the quality score and the biggest one by far is CTR.
Thus, your potential ROI and profitmargins decreases over the long term, too. In order to make a profit and get “paid back” 6-12 months later (assuming the customer sticks that long, too). Your homepage is cannibalizing other non-branded queries for commercial terms (more on this chestnut below). This ain’t new, either.
Retail profitmargins tend to be slim — in the 3% to 4% range. The margin on ad sales is usually 70% to 90%, according to BCG. Targeting lets you reach high-value prospects and exclude non-performing ones, thereby getting the most out of your ad buy. And sales are very good. 2: Personalization.
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