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< helpAdvertising Value Equivalent

The Advertising Value Equivalent (AVE) is an indicator used by Clickug to transform the number of clicks on a link into an estimated monetary value. This monetary value equals the advertising investment that a customer would have to make to get the same number of clicks paying ads on Google.

To calculate the AVE we multiply the total number of clicks by $1.56, the average CPC (cost per click) on the Google advertising platform. $1.56 is the average CPC obtained from the analysis of 22 sectors.

Methodology to obtain $1.56

Using Google Keyword Tool, generate keyword suggestions for each industry sector; then average suggested CPC across the top 200, 400, or 800 keywords; finally, average the values obtained in the "Top 800" column.



Source:
Dr. Augustine Fou “Digital Advertising Benchmarks 2014.” SlideShare.net. Mar 11, 2014. <http://click.ug/9a9aAY>

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