Advertising using Pay-Per-Click (PPC)
by: RickDavison |
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In this high-tech, online world in which we now live, using the Internet to advertise your products and services is no longer a luxury, it is now a necessity. Once you decide to advertise on the Internet, the question quickly becomes how do you get people to your website. There are many ways to accomplish this feat, including Search Engine Optimization (SEO) and Pay-Per-Click (PPC) advertising, but this article discusses the ins and outs of using Pay-Per-Click.
If you want your advertising to be found when searched for, you want it to show up as close as possible to the top of the search engine results. Both Pay-Per-Click and SEO can be utilized to achieve these results, but a basic difference between the two is the speed at which this can be accomplished. SEO might take you months to get those results, but Pay-Per-Click can get your results there in a few minutes.
Pay-per-click is a seemingly simple way to advertise that can be utilized on the most used search engines. You write an ad, bid on keywords that you think people will use to find your product or service, and if they click on your ad, you then pay the bid price. The person who clicked on the ad is then taken to your website. That is the easy part. The harder part of pay-per-click is understanding exactly how to find the right keywords and how to get the most clicks for the smallest bid.
Pay-per-click has its pros and cons. If you can master the rules, you can use pay-per-click to your benefit. One of the biggest benefits of pay-per-click is that you do not need to update or change your web pages to move up in the search results. This is something you must do when working with SEO. For a pay-per-click campaign, all you have to do is pay the bid amount for the ranking that you want to achieve (there are other ways to achieve this as well).
The biggest downside to pay-per-click advertising is that if you aren't smart about how you approach your bidding, you can end up in a bidding war. Raising your bid price is the quickest way to move up in the rankings. However, it is not the only way. This is where having a very good understanding of how PPC really works comes into play. If you rely on just raising your bid, you may be quickly outbid to the point where the keyord becomes unprofitable, so you must understand your other options.
To determine if pay-per-click is a cost effective form of marketing for your business, you must do some basic calculations to figure out how much each visitor to your site is worth. This value is computed by dividing the profit you make on your website over a given period of time by the total number of visitors for that same time period. For example, if your site made $600 in profits and there were 1,000 vistors, each hit would be theoretically worth $0.60. This basic formula is profits divided by visitors.
When we calculate the $0.60 break even cost, it gives us the maximum amount that you could pay for a click and not lose money. But of course, we want to make money, not just break even, so the bid per click would have to be somewhat less.
The most in demand keywords can have a price per click that is greater than $0.60 to get the highest search rankings. Luckily, there are ways to lower the price you pay per click and still keep your position. For exmple, this can be done by improving your ads. It can also be done by doing more keyword research to find cheaper alternatives.
The way your pay-per-click ad is written will have a direct effect on how much you pay for each click. The more the keyword, ad, and website match, the less you may pay for your click. Clearly, understanding these intricacies of PPC will have a direct effect on whether you make money or not.
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About the Author
Tolearn more about how pay-per-click (PPC) advertising works, visit Rick Davison's website on PPC Classroom 2.0, which offers 1000 tips for getting your online career moving.
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