Pay Per Click Advertising Issues

Pay Per Click Advertising Issues

The Players

The three largest PPC companies are Google, Yahoo, and​ MSN. There are many other smaller players on the​ market, but the​ above three own the​ search market. Smaller search engines have minimal traffic compared to​ the​ big three.

Use the​ big three for​ the​ following reasons:

· Yahoo, Google, and​ MSN handle over 95% of​ all Internet search. the​ smaller search engines have little traffic.

· They are reputable companies, actively fighting click fraud

· Quick feedback

· Scalable performance

· Excellent tracking

· They provide higher quality traffic

· Simplified management

Losing Money With PPC

Running a​ successful PPC campaign requires skills. it​ takes time to​ learn the​ ins-and-outs of​ PPC. Expect to​ lose money, et least in​ the​ beginning. Start with a​ small budget. Think of​ the​ money you spend as​ tuition. You are learning a​ valuable skill that helps you build a​ successful business.

The following are among the​ most important subjects you have to​ learn:

· the​ buzz words such as​ CPC, CTR, etc
· Writing effective ad copy
· Testing ads
· Bidding practices
· Ranking strategies

Learning is​ important because you are up against larger companies with more experienced PPC managers. Not only that your competitors know more than you, they might have larger budgets. as​ you study your competitors’ PPC ad campaigns, you might be looking at​ something that has been tested for​ years.

Bid Management Strategies

Never start the​ bidding process until you’ve determined the​ highest amount you can bid on a​ keyword phrase. Pay no attention to​ how much others are paying for​ a​ keyword. the​ two most important factors to​ determine Before you do anything else, understand your conversion rate and​ your average order size. if​ your average order size is​ $100.00, and​ your average CPC (Cost Per Click) is​ $2.00 with a​ one percent sales conversion rate, it​ will cost you $200.00 to​ make $100.00. Sounds like a​ bad idea.

Your conversion rate and​ your average order size are the​ two most important factors determining your maximum CPC. the​ maximum CPC is​ not set in​ stone. Improving you conversion rate will decrease your CPC. Let’s see how the​ results of​ the​ previous example influenced by doubling your conversion rate. Your average order size of​ $100.00 with a​ two percent conversion will result in​ a​ much lower CPC. Now, with 2 percent conversion you CPC is​ $1.00 instead of​ $2.00.

As the​ cliché goes, if​ you can’t measure it, you can’t manage it. PPC advertising is​ a​ business process that has to​ be measured. Understanding the​ numbers is​ essential as​ you determine the​ effectiveness of​ your campaign. is​ your business growing as​ a​ result of​ PPC advertising?

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