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Be sure to carefully test Google s ABM tools. Run them for a few weeks and see how they affect conversions. For most of our clients, the results tripled or quadrupled. However, for a few campaigns, the traffic crashed. In some cases, it stayed at near-zero for a few days and then climbed to a much higher level than before. For other campaigns, the traffic crashed and never recovered; we had to turn off the ABM tools to restore the traffic. You can monitor these tools with Account Snapshot. Select the campaign, set the time-frame for the last few months, and look at clicks and conversion rates. We recommend you monitor this daily for a few weeks.

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of the investment were $6.29 or less and brought in the same amount, the present value of the investment opportunity would be positive. The general rule is that investment opportunities with a positive present value should be taken.

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Example. Assume you have an opportunity to buy a piece of equipment for $5000. With this equipment, products can be manufactured with the revenue and cost characteristics described in Table 11.7.

The first page in Google shows eight ads. If there are more ads, they appear on subsequent pages. So where should your ads be Position 1 Position 4 Position 7 Although theory and studies say that number one gets most of the clicks, we ve found ads often get more conversions in lower positions. Why does that happen We think if the same product is offered by multiple vendors, the visitor clicks on the first ad, sees the price, and then clicks on the second, third, and fourth ads to see if the price is lower. By the time they reach the fifth ad and the price is the same, they buy from the fifth vendor. You can see this in analytics. Go to Google Analytics | Traffic Sources | AdWords | Keyword Positions and compare the positions and conversions. You ll find that the lower positions often produced more clicks and conversions. If your budget is too low, you ll notice that your campaign will max out its budget early in the morning and your ads won t show for the rest of the day. We recommend you improve the QS, which lowers your click costs and gives you more ads and clicks with the same budget. Calculate your CPA and CPL. If the account is profitable, you ll be able to increase the budget with confidence.

The present value of the cash flows in Table 11.7, computed as in Table 11.6, is $6300. The value of the investment in the opportunity is therefore $6300 $5000, or $1300. This positive investment opportunity value shows that the equipment investment will have a higher rate of return than the 5 percent available on the next best investment (assumed to be a savings account paying 5 percent). The depreciation is not considered a cash flow item and thus should not be included as a cash cost. The example illustrated does not include depreciation charges. In addition, these figures do not include income tax payments (which are a cash flow item). However, the cash flow figures in Table 11.8 do take taxes into account. Once taxes are included, depreciation should be considered as well, since depreciation is tax deductible. This calculation may also be set up as follows:

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