By far the most popular way to manage a PPC campaign is by ROI. That makes no sense to me. Maybe it’s the new math…
$100K Spend X 5:1 ROI = $500K Revenue – $100K Spend = $400K Total Revenue
$500K Spend X 2:1 ROI = $1Mill Revenue – $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’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?