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Old 10-06-2008, 15:13
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Well in a nutshell, you should be looking at the overall picture of how much can you afford to spend per acquisition (sale/lead). It depends on how much margin you make, the cost of google clicks etc.

Generally a campaign with a click through rate of 3% is deemed as good.
You don't really want to aim for position 1 - its more cost effective to aim for position 3-5 really.

You need to check your bounce rates on your web stats too - are the visitors you're attracting looking round your site or exiting straight away. A high bounce rate suggests you're landing them on the wrong pay, your site isn't relevant or there's something wrong with your content.

I'm afraid there's isn't a 'you should aim for xxx' type answer. Lots of people measure in lots of ways. Remeber to split test as much as possible on adwords to test different advert copy etc. The more your test, the more you'll be able to fine-tune your results
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