Lemonade Stand As I work away in my medium sized agency in the middle of America, working with one of the our Pay Per Click (PPC) E-commerce clients, I am reminded of a game that I played in grade school called Lemonade Stand. Looking at it now I notice the similarities it has to the PPC accounts I run.

The goal of Lemonade stand was to make as much money as possible within a 30-day period. The player had complete control over every aspect of the business including cost of goods, pricing, purchasing supplies and budget.

There of course was a big unknown, and that was the weather. That unknown could make or break your day. If the weather was hot and sunny a lemonade stand operator could raise the price and still maintain volume and ultimately make more money. If it were raining and cold, a player would be lucky to break even.

This is not unlike running a PPC campaign. Being a Search Manager I have control over my cost per click, keywords, ad-copy, and managing my clients budget. Of course my big unknown is search volume. Search volume is what will ultimately drive sales volume. Factors that influence search volume:

  • Seasonality of the product
  • What engines the campaigns are running on
  • What keywords are bought
  • The Quality Score – how relevant your keyword is to your ad group and to a user’s search query
  • Max Cost Per Click

The list goes on and on. Without search volume, I am sitting at my lemonade stand in the rain and watching my ice cubes melt. With it, however, I am a lemonade tycoon!

-Dan Tisser - Sr. Search Marketing Manager

Tags: , , , , ,

2 Responses to “Guest Post: PPC vs. Lemonade Stand”

  1. But how is PPC Like Oregon Trail?

  2. Dan Tisser says:

    You have died of dysentery and buying crappy traffic.

Leave a Reply

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>