Pay-per-click (PPC) advertising is when an advertiser pays for each qualified click that sends a search engine user (i.e., visitor) to the advertiser's web page. PPC requires the advertiser to bid on key words or key word phrases chosen by the advertiser. There are many PPC advertising services available to choose from. Google AdWords and Overture are probably the two most popular in use today.
The PPC search engine allows you to buy a top position in the search engine results for the particular keyword or phrase you choose. The PPC search engines can deliver targeted and qualified visitors to your web page at an economical advertising cost if you manage the program carefully with a clear objective. PPC provides the advertiser with assurance that their ad is being delivered to the targeted audience.
PPC advertising uses a bidding process where the highest bidder or highest activity value, depending on the search engine, for a particular keyword or phrase will receive the top placement on the search engine results page. The PPC search engine will place your ad text in a special location on the results page when a user searches on your PPC keyword or phrase search term.
As an example, Google AdWords appear on the right side of the search results page while the organic (i.e., natural) search results appear on the left side of the page. In the case of Yahoo! Search, the sponsored ads appear on both the left and right side of the search results page. The top 2-3 sponsored ads appear in the top positions on the left side above the natural search results and the next 3 sponsored ads appear at the bottom of the left side and on the right side of the search results page along with other sponsored ads.
PPC advertising is a good way to obtain web page visitors when you don't have a top ranking web page to get you the necessary natural search engine placement. Statistics show that over 80% of search engine users prefer the natural search results as opposed to sponsored ads. Nevertheless, the search engines deliver a huge amount of visitor traffic to the sponsored advertisers especially in the competitive keyword markets.
The typical PPC advertising campaign is based on the bid per click. For example, you bid $0.10 for a particular keyword or phrase that is accepted by the search engine. Whenever a search engine user clicks on your sponsored ad then you are charged $0.10 by the search engine. This amount is deducted from your account funds. Your placement in the search engine results page depends on the search engine. For Google, the placement is determined by your bid price and the ad's click-through activity. For Yahoo, the placement is determined by your bid relative to other bids.
PPC can be an excellent method for getting visitor traffic to your web site but it can also cost you a lot of money. You need to be extremely careful and monitor your cost of using PPC versus the revenue generated. As the old saying goes, do the math. Calculate your return on investment (ROI) on a continuous basis to determine if you are making a profit on your PPC campaign.
As an example, assume your bid for a particular keyword is $0.10 and the product you sell has a profit margin of $15 after product costs (excluding PPC costs). If your conversion rate (the number of visitors that buy your product) is 1.0%, only 1 of your visitors will buy your product out of 100 visitors. Your net profit for every 100 visitors from your PPC campaign will be $5 ($15 profit margin less $10 for PPC).
It is a good idea to experiment with the different PPC search engines to find the one that works best for you. In addition, you need to spend the necessary time and effort to select the keyword or keyword phrase that has a profitable conversion rate for your specific web page. A higher conversion rate implies more profits to you.
Try to avoid the senseless bidding war with your competitors. Seriously evaluate whether having the number one placement position is worth the PPC price you pay. What about position numbers two, three and so on. Will you get enough clicks in one of those positions to make your PPC campaign a success? Do not automatically assume that you have to be in position number one to make a lot of money using PPC. It all comes down to experimenting and testing.
There is no such thing as the perfect PPC campaign. Evaluate the performance of your PPC campaigns on a continuous basis. Are you leaving money on the table by not adjusting your PPC bid to a lower level? Should you increase the bid price to get more traffic? Is your conversion rate changing? What are your competitors doing? Should you be considering different keywords in your campaign? PPC advertising is a great way to get traffic but at a definite price. PPC requires a thorough knowledge of the PPC search engines that you use and constant monitoring and evaluation of your campaigns.
--
Copyright (C) 2004 F. Terrence Markle ? All Rights Reserved
Get my F.R.E.E multi-part series on generating targeted and quality traffic to your web site. http://www.quiksystems.com/wst/trafficseries.htm Get my F.R.E.E newsletter on building your own targeted mailing list: http://www.quiksystems.com/wst/trafficseries.htm
About The Author
Copyright (C) 2004 ? F. Terrence Markle has worked for over 20 years with public and private companies. He has an MBA in marketing and finance. He has been involved with Internet-related businesses for over 3 years. His primary focus is the marketing of affiliate programs.
http://www.quiksystems.com/wst/trafficseries.htm
executive chauffeured services Bradford .. Madison to Airport carOn Friday, July 15th all Google advertisers got the email... Read More
In this age of speed dialing, T1 lines and other... Read More
Yahoo announced that their Publisher Network, formerly available in the... Read More
As you probably already know, AdSense is revolutionizing the way... Read More
I've been working with Google's Adsense program for a while... Read More
There is no question that you can make some good... Read More
Pay per click (PPC) advertising can be a dream come... Read More
How I Boosted My Monthly AdSense Profits from... Read More
In private consultations with some Search Engine Optimizers I am... Read More
According to Andy Jones, a member of the Best Practices... Read More
When we launch a new product, we all hope it's... Read More
They are calling him the million dollar man. Jason Calacanis... Read More
Pay-Per click fraud dates back even from the time when... Read More
Campaign strategy for Paid placement:A Paid Marketing campaigns provides immediate... Read More
Did you know that you can make money from Google... Read More
Internet technology offers vast opportunities to promote your business with... Read More
Google's AdSense program is a proven money-maker that has enriched... Read More
As a blog or site owner, you can make some... Read More
Let's face it... Google Adwords is not the only source... Read More
Determining keywords is a critical step in web design. If... Read More
The core principle of affiliate marketing is that the referring... Read More
In the mid 1990's websites used to earn income by... Read More
How?Dead easy.I implemented this tactic myself yesterday on one of... Read More
So you want to make money with Google Adsense? I... Read More
If you haven't yet got a Google AdSense account for... Read More
O'Hare Chicago prom limo ..A ClickBank merchant account allows you to define and sell... Read More
Pay-Per-Click (PPC) advertising is one of the most cost effective... Read More
If you want to make money online with a work... Read More
To be a successful affiliate marketer takes a ton of... Read More
Make $$$$ with Google Adsense! Top Paying Keywords! $100 per... Read More
Pay per click (PPC) advertising continues to gain popularity in... Read More
First impressions affect your relationship with someone for life. In... Read More
Why do people search on search engines? Let's confess this... Read More
It may seem to be a very expensive way of... Read More
Google Adwords is a great tool! Careful use can lead... Read More
The other day I was talking to one of my... Read More
Most pay per click ads draw amazingly low click through... Read More
Google stands to lose millions if fraud continues. It is... Read More
Google AdSense allows webmasters to dynamically serve... Read More
There is no question that you can make some good... Read More
How I Boosted My Monthly AdSense Profits from... Read More
Paid Search Advertising (also Pay-Per-Click, PPC) has gained a significant... Read More
Click fraud has become a major problem for online marketers.... Read More
There is no doubting the success of Google's Adsense program.... Read More
Like any Google AdSense Publisher, you will want to increase... Read More
As the dust settles and the excitement caused by Google's... Read More
Numerous bloggers these days are looking to earn extra cash... Read More
Pst! Wanna know some Adsense secrets? The only secret is... Read More
Incorporating high paying keywords into your site is critical to... Read More
Cost per click or pay per click is a common... Read More
Pay-Per-Click Advertising |