Is the Pay Per Click Engine Your Friend or Enemy?
A pay per click engine is an excellent source of traffic for your
website. There are many advantages to using a pay per click
search engine for advertising your website. However, there are
also some warnings to heed to ensure that your pay per click
engine advertising doesn't bust your budget and break your
business. With thoughtful planning, logical keyword bidding and
excellent campaign management, a pay per click engine advertising
campaign can help you to create a flourishing internet-based
business.
Planning for Pay Per Click Engine Advertising
The process of planning for pay per click engine advertising
begins with getting to know your target audience. Considering
their mindset you brainstorm to identify keywords and keyword
terms that they might use in the search engines when searching
for the products, services or information that is featured on
your website. Using the list of keywords that you come up with,
you can begin to conduct keyword research to determine the
popularity of the keywords, to get recommendations for alternate
keywords, and to see what the bids are for the keywords using the
pay per click engine's keyword suggestion and bidding tools.
Google AdWords and Yahoo! Search Marketing (formerly Overture)
both have tools you can use for keyword research relating to the
pay per click engines that they serve. WordTracker is also an
excellent keyword research tool that enables you to research more
than one pay per click engine at a time.
Keyword Bidding for Pay Per Click Engine Advertising
Once you have completed your keyword research, you will have a
good idea regarding which keywords you should bid on to get your
website advertised in the search engine or search engines.
However, before you ever place a bid for a keyword, you need to
determine what the value per click is to your company.
This requires some data analysis. The crux of the issue that you
do not want to bid more for a keyword than what your value per
click is. If you do, you'll lose money because your pay per click
engine advertising will be too costly to be valuable.
You need two figures in order to determine the value of each
visitor to your website - 1) Your net profit per sale; and 2)
Your conversion rate. If you are just launching your website, you
won't have the historical figures to calculate this, so you will
have to estimate and then closely monitor your pay per click
engine campaign and make adjustments as needed.
To determine your net profit per sale, you use your gross
revenue, subtract your total expenses and divide the difference
by you total number of sales. To determine your conversion rate,
you use your total number of unique visitors and divide that
number by your total number of sales.
By dividing your net profit per sale by your conversion rate you
will come up with a number which is the value of each visitor to
your website - i.e. the value of each click. This is the amount
that you do not want to exceed when bidding on keywords for your
pay per click engine advertising.
Campaign Management for Pay Per Click Engine Advertising
Campaign management for pay per click engine advertising is
pretty important because there is a lot of competition, even in
the pay per click engine advertising programs. Without effective
campaign management of your pay per click engine campaign, your
advertising can lose its kick and can become ineffective.
Monitoring your pay per click engine campaign will help you to
determine which keyword bids are producing results and which ones
are not. You can make adjustments overtime to ensure that your
pay per click engine campaign remains effective. You should also
recalculate your value per click frequently to ensure that your
pay per click engine advertising campaign is not costing you more
than it is worth.
Copyright Christopher J. Enders. Are you at the end of your rope,
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