Magic formula to predict PPC effectiveness?

The tantalising prospect of being able to say with certainty how well a brand will perform as a result of pay per click (PPC) activity could well become a reality if marketers know their maths. These are the intriguing implications of a claim put forward recently by a team consisting of academics and digital marketing experts.

According to Sussex University mathematicians working alongside executives from digital marketing specialists, DC Storm, a basic algorithm is all retailers need to calculate the effectiveness of their proposed PPC spend.

PPC, whereby a company secures a sponsored placement of its brand on a search engine results page in return for making a payment each time that link is accessed, is one of the most frequently used methods retailers have of reaching potential customers via the internet.

The team from Sussex University and DC Storm has based its claim for a PPC algorithm on the results of a study it carried out on PPC activity within the travel industry. The study looked at the links between areas such as position on the search results page, cost per click, and conversion rates.

The algorithm was developed as a result of the study’s findings and should, the team claims, help advertisers use PPC with more confidence and avoid the need for testing.

DC Storm CEO, Seth Richardson, commented that the new algorithm will help advertisers

“make informed decisions on whether it is worth investing more to increase their rankings” and “get to their most efficient positions quicker and save them money in the long term too”.