Pay-per-click advertising is one of the most cost-effective methods
of getting leads known to Internet
business owners. It gives you
instant traffic, and allows you to test your business model in
real time.
Laptop Battery At the same time, pay-per-click advertising (or PPC) is not as
simple to use as the PPC companies will have you believe. If you
jump into the system without preparing for 'tracking' your results,
doing deep keyword research, establishing your ROI and most
importantly, testing your ads, you'll lose a lot of money really
fast.
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Thinkpad Before we start talking about the major PPC engines, here's a
brief overview of what you need to know.
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Microsoft The Basics Of Pay Per Click
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Laptop Computers There are some terms that you should know if you want to
understand any discussion on PPC. Some of these are
self-explanatory, some you might have heard before. Either way, go
through this section and make sure to read those parts that you
don't know of.
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Laptop Computer The PPC Model
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Desktop Computer In the PPC advertising model, you have three core elements -
keywords , ads , and bids . These three elements are combined with
' placement ' to create an advertising model that displays
'relevant' ads on search engines (in response to keyword searches),
portals and websites that opt to display such ads on their pages
(the ads to be shown are determined by a keyword analysis of the
page).
Notebooks For a PPC campaign, you need to know the keywords that you are
targeting. For example, for a niche site that promotes a time
management product, I would create a list of keywords that included
keyword groups containing terms related to time management,
productivity, saving time, self improvement and maybe even business
soft skills. As I've told you before about keyword research, you
should have a big list so that you capture most, if not all, of
your target traffic.
Lenovo The next step is to write the ad copy for the ads that will be
displayed for your searches. The ad copy is extremely important
because along with your bid amount, this will determine the
'conversion rate' (explained below) of your ads. Write concise,
compelling ad copy that highlights the benefits of your website /
product, and avoid fluff.
Hard Drive Once you've written your ads, it's time to bid . The bidding
mechanism differs from PPC engine to engine, but the idea is the
same - your bid amount is the maximum cost (usually calculated in
U.S. dollars) that you are willing to pay for each keyword. It's
important to know how much you can afford in terms of bidding costs
so that you avoid going into bidding wars with your competitors,
and also so that you don't spend more than you make through this
campaign.
Travelstar Cost-Per-Click
Gateway Cost-Per-Click ( CPC ) is the amount you pay each time a
potential
customer 'clicks' on one of your
ads that they see on their search engine results or on websites.
This is often less than the maximum bid amount you set for each
keyword.
Laptop Parts Conversion Rate
Software Conversion Rate is the ratio of clicks over impressions (the
number of times your ad is displayed on searches or page loads on
websites). A typical conversion rate is between 2 to 3 percent -
that is, for every 100 impressions, you get 2-3 clicks on your
ads.
Hard Drives Conversion Rate is closely tied in with the quality of your ad
copy , and also with Placement , which I'll discuss next.
Electronics Placement
Canon If there is more than one person bidding for a keyword (as is
almost always the case), the placement of the ads (which ad comes
in on the first slot, which comes in on the second, etc.) is
determined by bid amounts of each competitor. The higher your bid,
the better your placement (Google adds the conversion rate into
their placement calculations, and I'll tell you how later). Your
conversion rate to a certain extent depends on how high your ad is
placed on the 'rankings' and this leads advertisers to place high
bids just to rank at the top. The trouble with this approach is
that you might enter into a bidding war with your competitors and
lose a lot of money.
Desktop Pc Tracking
Desktop Computers Tracking refers to measuring which keywords are bringing you the
best leads or sales, and which keywords are bringing you 'window
shoppers' - people who are 'compulsive clickers' and don't buy or
sign up. Tracking your ad campaign will help you further fine-tune
your ads and improve your ROI.
Think Pad ROI
Repair Your Return-on-Investment (ROI) is determined by how much you
are spending over how much you are earning in net profits from your
ad campaign. It's important to establish a base ROI before your
start your ad campaign - assume a conversion rate of 1 percent - so
that you don't over-spend and are able to run this campaign within
your budget.
Data Recovery The Pay-Per-Click
World
Cisco Currently, there are two major PPC engines, Google AdWords and
Overture (now known as Yahoo! Search Marketing ). While there are
many alternatives such as Espotting (now Miva), MetricsDirect and
Kanoodle, the top two PPC engines are a class apart when it comes
to delivering results.
Keyboard However, one of the first pieces of advice you'll hear from most
people is that bigger PPC engines such as AdWords and Overture are
too 'expensive' to break into (with CPC for top positions easily
passing $3-$4 for many keywords, and reaching $10 for really
competitive keywords).
Monitor In reality, if you are just starting out, it's critical that you
pick one of the top two PPC engines. Why?
Desktop Traditionally marketers judge PPC engines on the following
criteria:
Infosys Reach - How large your potential target market is.
Cost-per-click
Quality of traffic - Do the leads fit your customer profile? Are
the willing to spend on your products?
Quality of service - The tools and help offered by the PPC
engines.
Overture and AdWords beat their competition on all of these
metrics except CPC. However, the benefits of 'cheaper' clicks are
more than compensated for by the ease of use of the big two, and
more importantly, as any PPC expert will tell you, the quality of
traffic from Overture and AdWords is far better than from other PPC
engines.
Refurbished Laptops Overture
Wipro Overture was purchased by Yahoo!, and recently renamed to Yahoo!
Search Marketing. The name's not catchy, but with Yahoo! Behind the
'second-largest' PPC engine on the Internet, you can expect that
the quality of traffic and services will improve over the next
year. Yahoo's acquisition of Overture is the single biggest reason
advertisers have started paying attention to Overture again,
although Google AdWords still commands leading respect.
Lap Top Overture is a manually edited PPC engine. When you write ads for
your website, these ads (and the keywords you specify) have to be
approved by human editors before they can appear in search results
on Overture partner websites. While this ensures that the quality
of ads remains above a certain level, this is also a hassle, as new
ad campaigns can take several days to be approved, and there is a
distinct lag between the time you plan to improve a section of your
campaign (for testing) and the time those changes actually go
live.
Refurbished Overture keyword bids are totally transparent, meaning that any
advertiser can see at any time what other advertisers are paying
for that particular keyword. This is both useful and harmful -
advertisers can accurately target their 'ad placement' positions,
but knowledge of the top 2 or top 3 bid amounts can easily lead
into a bidding war, and competitors undercutting your ads by
posting a bid that is $0.01 higher than yours.
Memory Google Adwords
Intel Google AdWords is the leading PPC engine on the Internet,
although it's closely followed by Overture. Combined, the two PPC
networks are distributed on nearly every search engine or
portal.
As400 Google is totally automated - your ads go live within minutes of
being written. This is one of the two significant advantages
AdWords has over its competition - no need to wait for 'approval'
of your keywords and ads, which can take a few days on other PPC
engines.
Averatec Google AdWords, like Overture, does not charge you your maximum
bid amount, but just one cent more than the bid lower than yours.
On the other hand, AdWords bids are not transparent like Overture -
bidders have no idea what their competition is bidding. This
reduces the threat of bidding wars.
Hardware The second advantage of AdWords is that it includes conversion
rate calculations in its ad-ranking algorithm. Simply put, your ad
may rank higher than your competitors' even if you are bidding
lower, just because you have a higher conversion rate. AdWords
rewards ads that are better written, and thus provides a subtle
barrier against ad spam.
Dual Xeon PPC advertising has become the ultimate marketing tool for
testing new ad campaigns, business models and landing pages without
spending too much money. Where else can you test a sales page by
sending it 100 leads for $5?
Storage If you are looking to promote your website / product effectively
but cannot wait for your search engine rankings to show on Google
or Yahoo, you should seriously consider PPC advertising as an
advertising tool that not only brings in instant traffic (and
sales), but is a hedge against ranking fluctuations by ensuring
that you stay on the top page for your target keywords.
Seagate This is just a general overview of Pay Per Click
marketing/strategies. Stay tuned for Part 2 coming soon, where I'll
go into some much more advanced techniques to really ramp up your
traffic, all the while spending less money!
Computer Sales About The Author:
Computer Hardware Brad Callen
Professional SEO
Creator the popular SEO Elite Software program
http://www.seoelite.com
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