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I Must Not Understand The New Math
Thu, Jul 16, 2009
59 Comments
By far the most popular way to manage a PPC campaign is by ROI. That makes no sense to me. Maybe it #8217;s the new math #8230;
$100K Spend X 5:1 ROI = $500K Revenue #8211; $100K Spend = $400K Total Revenue
$500K Spend X 2:1 ROI = $1Mill Revenue #8211; $500K Spend = $500K Total Revenue
Last time I checked $500K was better than $400K right?
So ROI and budgets are not super awesome happy fun measures of success. So why all the focus? Has the math changed?
ADDED: To be perfectly clear I #8217;m talking about a case where increasing a spend that significantly brings your ROI down. The point of my question is that even at a lower ROI with a greater spend if you get more to the bottom line why would you constrain yourself with ROI?
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I Must Not Understand The New Math
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Client Communications #8211; The Old Black
Why I Don #8217;t Blog Too Much #8230;
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Measuring Online Marketing Success #8211; It #8217;s Just Math People
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