Pay Per Click Advertising Explained - PART 1
Advertising your services or products on the Internet is
both extremely effective and extremely competitive. There
are several ways to go about attracting traffic to your
website; Pay-Per-Click is one of the options you can choose
from, along with developing an SEO, or search engine
optimization campaign. Both pay-per-click and SEO are
targeted to get your website placed as close to the top of
search engine results as possible. One of the differences
is that it takes minutes to set up a pay-per-click campaign
versus months for a good SEO campaign.
Pay-Per-Click is a simple type of paid advertising that
most search engines, including some of the largest ones,
now offer. It requires a bid for a "per-click" basis, which
translates to your company paying the bid amount every time
the search engine directs a visitor to your site. There is
the added bonus that when a per-click site sends your
website traffic, your site often appears in the results of
other prevalent search engines.
As with all marketing campaigns, there are advantages and
disadvantages. If you understand the process and monitor
your pay-per-click campaign frequently, it can be very
effective. One of the greatest advantages is that you never
have to tweak your web pages to change your position in
search engine results, as you must do in a typical SEO
campaign. What you do have to do in a pay-per-click
campaign is pay a fee.
Another advantage is the simplicity of the pay-per-click
process. You just bid and you're up and running. It doesn't
demand any specific technical knowledge, though the more
you know about search engines and keywords, the easier -
and more effective - the process will
be.
The downside is that pay-per-click is essentially a bidding
war. A higher bid than yours will lower your position on
search engine results. This means that you will have to
raise your bid to regain your position - which can
obviously become quite expensive, especially if you are
bidding on a popular keyword.
In order to determine if pay-per-click is a cost effective
form of marketing for your business, you must do some
computing to figure out how much each visitor to your site
is worth. You can compute this value by dividing the profit
you make on your website over a given period of time by the
total number of visitors for that same time period. For
example, if your site made $5,000 in profits and there were
2,5000 hits, each visitor would be theoretically worth 50
cents. The basic formula is profits divided by visitors.
The figure of 50 cents per visitor is the point at which
your business breaks even. The idea, of course, is to show
a profit, not to merely cover your costs. Therefore, you
are aiming at a figure less than 50 cents per click.
To continue to PART 2 Click here.
About the Author
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