According to the Minimax Principle, one of the main principles of game theory, to win, it is necessary as a minimum to not lose. So as not to lose on Overture and other paid Search Engines, it is necessary to define the price of a search phrase, the size of the profit which you earn on average from each visitor from a SE on this phrase, and to compare it to the minimum price at which you can purchase this phrase from a SE. In this way, the task of calculating recoupment for Pay-Per-Click services is reduced to a calculation of the average price for click for each of search phrases.
The work of the marketing promoter is to increase the quantity of downloads of your software. But if the user has downloaded the program, but has not begun to use it, and even more, to purchase it, then it is a problem of the programmer.
Each product has its own statistics of downloads and sales, its own ratio of sales to downloads, and its own average value of the profit received for each copy of the software downloaded.
With the help of Download Analyzer these statistics are easily calculated. To see an example, it is sufficient to take for analysis one month's log files (more is certainly better) and load them into the program. For each product you immediately receive two parameters:
Further you start the Pay-Per-Click Calculator, and in the field Sales volume for period you enter the month's sales volumes for each of your products.
The PPC Calculator automatically calculates all other parameters:
For a more exact calculation, enter the following two corrections:
By default, the minimum possible price for each click on paid SE is about 5 cents. But if you want to calculate recoupment for an SE with a different value, you have to modify the field: Minimal possible value of Pay-Per-Click Tax
After accepting the data about sales that you entered, the program recalculates the report on search phrases. As a result, two additional fields appear in the report:
The Click Tax value is the one we need. The Click Tax value should be compared with the cost of one click on the paid SE, and a conclusion drawn about the expediency of purchasing the search phrase.
Download Analyzer has facilitated the decision making procedure for you - Click Tax values for payback phrases are coloured green, and values for definitely unprofitable phrases are shown in red. All that remains is to sort the report on the Click Tax field, and to go to Overture to purchase the winning phrases.
May we give one piece of advice here. It is not necessary to purchase phrases for which your site already appears on the first page of results of a Google Search. Furthermore, if you have a large set of relevant payback phrases, you can try the following: create a special page for your payback phrases and submit this page to the SE. With luck, it will shoot to the top of the SE search results. But if this doesn't work out for you and you need immediate results, then the purchase of relevant payback phrases is a reliable and fast way of increasing sales of your software.
Most likely, your relevant, payback phrases are not those for which your site appears at the top of the SE search results. And to receive reliable statistics on them, you need either to have large log files, or to take a risk once and purchase them on a Pay-Per-Click SE.
After the first experience of working with Overture, it is very important to analyze your log files, setting the filter on SEs at the value Overture. It may well turn out that the relevance of search phrases for visitors from Overture will differ from the average relevance for all other SEs. But the most important thing is that you receive more exact statistics on the recoupment of phrases directly on Overture, and these should be used.