Know the dollar amount or percentage of the advertising spend that actually generates results. Ad spend that generates value typically ranges from 65% to 90% of total ad spend. Logic361 recommends calculating the value of conversion metrics (cost-per-conversion, spend-to-value or ROI) separately and compare them to the cost of advertising that produces no value (investment keywords.) This type of analysis provides the ability to fine tune KPI’s and measure goals. Many advertisers take this analysis one step further and analyze trade name keywords separately.
