Published: Dec 09, 2008 - 06:09 am
Story Found By: annie7 1160 Days ago
Category: PPC
4 Comments
4 Comments
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Comments
Sphunn for creative use of Awesomization in a title.
Nice thoughts on ROI - I tried to comment but got a Javascript error of some sort. Ive seen situations where even just splitting out 1 or 2 ad groups based on ROI worked miracles. The bad performers tend to also be the broadest groups with the highest impression count, and theyll suck a PPC budget dry.
Ya, as I was proofing this, I wondered "is this strategy too obvious?" It certainly seemed that way after doing it and writing about it.
I dont get it. The blog post mentions Modern Portfolio Theory and even links to a Wikipedia page on that theory, but the technique he describes has nothing to do with MPT. MPT involves accounting for risk in investments as quantified by performance variance and his technique doesnt do that. In fact, it assumes no variance in performance. Ad groups are assumed to always produce the same ROAS. There is no accounting for risk.I dont get the use of the phrase "graduated campaign budgets." Whats graduated?All he did here - if I am reading this correctly - was look at which ad groups had higher ROAS than others and then allocate more money to the better performing groups. Isnt every diligent PPC manager supposed to be doing that periodically?