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Using Pay Per Click Advertising To Make Money

Aug 17, 2007
Using the internet to advertise products and services is not only extremely effective it is also very competitive. When it comes to getting traffic to a website there are many options. Two of the most popular are pay-per-click and search-engine-optimization (SEO). Getting your website to the top of the rankings in the search engines is the name of the game and pay-per-click and SEO are targeted for doing just that. There is one big difference between the two methods; time. With pay-per-click you can have a campaign up and in the sponsored listings in a matter of minutes; SEO on the other hand can take several weeks or months to get your website ranked.

Pay-per-click is quite simply one of the easiest and cheapest ways to advertise on the internet today. Most search engines offer some form of pay-per-click advertising program. While they may differ in the user interface and how ads are ranked they all have one thing in common. Every time a web surfer clicks an ad that advertiser has to pay a fee.

There are advantages and disadvantages when it comes to a pay-per-click marketing campaign. If you monitor your campaigns closely and continually learn from your mistakes it can be a very effective money maker. One of its biggest advantages is you don't have to tweak your web pages to adjust your position in the search engines. It is all based on how much you are bidding and how well your page converts.

One of the biggest advantages is how quickly and easily you can get an ad up and driving traffic to your web site. Once you set up your ad, your bids and the link to your website you are up and running. There is nothing overtly technical about it; it just comes down to learning about your market and giving them what they want.

The disadvantage of a pay-per-click business is that you are essentially engaging in a bidding war. The higher bidder gets the higher position in the search results. If you are outbid your position will drop. To regain your position you will have to raise your bid which can result in less profit. The more popular the keywords you're bidding on the higher the bids tend to be.

All it takes is some simple math to determine if your pay-per-click campaign is cost effective. What you need to figure out is what the cost per click of each visitor to your site is and how much profit per click you are or are expecting to make is. Most marketers base this on 100 clicks and a 1% conversion rate. If your product costs $25 then you need to figure what the break even point is for your highest bid. For every 100 clicks you get one sale worth $25. That breaks down to a profit per click of 25 cents to break even. But this is a business and the idea is to make a profit. Any bid under 25 cents will be profitable and the lower you can bid and retain good position the greater the return on investment (ROI).

Learning everything you can about keyword research and how they relate to the market you are targeting is the key to pay-per-click success. There is no limit to the amount of keywords you can use and the more targeted they are the bigger your ROI.

Your ad copy is the most crucial part of your pay-per-click marketing. Your description of what product you are offering needs to be as specific as possible to attract searchers who are looking to buy what you are offering. Bear in mind that pay-per-click ads are short and to the point. The words you use must be specific, to the point and enticing to potential buyers.

Once you have a pay-per-click campaign up and running it is vitally important that you monitor your bids and ad placement. Trying to get a top ranking is not always necessary, but you do want to be in the middle of the first page. By keeping close track of your bids you can jockey for the prime positions and create the greatest return on investment. The whole purpose of pay-per-click marketing is to make money, not win the bidding war.

To win at pay-per-click marketing you must not only monitor your campaigns closely but you must also analyze and research visitor behavior and the markets you are engaged in. You must take all these considerations into account to insure that your pay-per-click campaigns are a success.
About the Author
Andrew Bicknell is a successful internet marketer, Webmaster, and writer. For more information and links to in-depth guides on using pay-per-click advertising to make money click here.
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