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Pay per Click Marketing: How It Works in a Nutshell

Jun 8, 2008
The advertisers that place those ads will pay the search engines a certain amount for each click that the ad brings that takes a consumer to their website. If they meet the formula that the pay per click search engine has compiled for top ads, they can find their ads on the first page of the search results where Internet searchers are more likely to see them and click on them.

The more competition for a keyword or keyword phrase, the higher you'll have to bid in order to get your ad ranked high. So it's important to be able to find keywords with large search counts, little or no competition, and of course are relevant, to be used in your PPC campaign.

PPC marketing enables a website owner to increase their traffic pretty quickly. It can be an effective means of selling more products or building a list with the increase in website exposure.

When a consumer is searching for a topic and they put the keyword or phrase related to that topic in the search box, they'll see a page of results that include sponsor ads, organic results, and the pay per click ads on the right side of the screen (in Google AdWords).

The higher the ad is placed on that page, the greater the chances of getting people to visit the website. Google and other PPC search hubs have formulas to determine what ads get top placement - it's not all about who bids the most for the keywords.

Google is always changing the way in which it determines what is important in order to rank your ad higher. It's now known that your ad must be well written and relevant. You must make sure you are reading up on the latest requirements that Google has stressed are important factors to have a highly rated ad.

Getting the visitor to click through to the website means you have to capture their attention and pull them away from your competitions ads. While many PPC marketing campaigns are successful, there are that many that end up losing money.

This can be due to a number of reasons. The ad might not clearly convey what the landing page is all about, causing tire kickers to click through just to see. Or, your ad might be deceptive and the landing page not convincing enough to cause a buyer to make a purchase.

The advertiser pays for every click that's made from the ad. If a thousand people click on the ad, but don't buy anything, then they're still faced with paying the search engines for having their ads on the search results page. That's why it's critical that you monitor your campaigns.

To safeguard against blowing your entire PPC advertising budget in a couple days, make sure to start with a small daily budget. You can start with a $10 a day maximum that you pay. When your daily amount is reached, Google will stop running your ad.

The more successful PPC marketers are the ones who know how to get the traffic to their site and how to entice sales from them. Those marketers enjoy a high ROI (return on their investment).

It's important that when someone clicks on your ad, they are directed to a 'squeeze page' that gathers the name and email address. You'll want to make sure you include this step because people on average will need between 5-7 exposures to something before they will purchase. Also, people buy from those that they know and trust, so you must start building a relationship with your list to ensure long term growth for your business.

PPC marketing enables you to test how successful an ad is and gives you the opportunity to pull it if necessary to replace it with a better one or to keep the same ad and tweak it to optimal performance. Try not to change the entire ad, unless your split testing something.

You should also start with some of the smaller search engines, which are cheaper, so you get used to the process and don't waste a ton of money.
About the Author
Ron Richardson is an online entrepreneur and consultant.
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