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Advertising using Pay-Per-Click (PPC)
Advertising services and products on the Internet is a lucrative career option, but can also be a cutthroat endeavor, so you must be properly prepared. There are uncountable ways of luring consumers to your website, such as Search Engine Optimization (SEO) and Pay-Per-Click (PPC) advertising. This article discusses some of the advantages and disadvantages of Pay-Per-Click (PPC) and why you should consider it to get people to see your products and services.
When advertising online, your goal is to advertise your products as close as possible to the top of the search engine results. Pay-Per-Click and SEO can both be used to achieve this, but a basic difference between the two is that it can take minutes to get your pay-per-click results to the top while it may take weeks or months to get your SEO campaign to just as high of a position.
In many ways, pay-per-click is an uncomplicated form of paid advertising that is offered by most top-notch search engines. The way it works is that you place a bid for each keyword that you think will bring visitors to your website. When your ad is displayed and clicked on, you pay the bid amount and the visitor is sent to your website. The complicated part of pay-per-click is understanding exactly how you get the most traffic for the lowest bid.
Using pay-per-click rather than some of the other methods to generate traffic to your website has many advantages to it. The largest advantage is that you can generate immediate traffic to your website just by placing an ad. If you wish to move up the positioning in the ad, you can simply increase your bid (there are also other ways to do this) until you are in the position you want to be. To move up in the rankings when using SEO, you would have to change your page and wait to see if the changes move you up in the rankings.
Pay-per-click advertising's biggest downside is that if you aren't careful about how you manage your ads, you might have your keywords bid up. Since the quickest way to move up in the ranking is to raise your bid, it also the most dengerous. A larger bid directly hits your bottom line. Luckily, raising your bid is not the only way to improve your rankings using PPC.
By doing some basic calculations, you can figure out what your maximum pay-per-click bid can be before you start to lose money. You can figure the amount by dividing the the profit of your website by the number of visitors. If 1,000 visitors makes you $600 in profits, each visitor has a value of $0.60 to you.
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.
You should be aware that the most sought-after keywords cost substantially greater than 60 cents a click. To work around this, you could choose to bid less per click or you could improve your campaign so that you price per click were to come down. You could also do more research on your keywords to find those that do not cost as much to advertise on.
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.
About the Author Before you start using pay-per-click advertising to sell your products and services, be sure to check out Rick Davison's comments on PPC Classroom 2.0 and receive 1000 free tips for getting your online marketing career started. |
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