| |
| |
|
PPC & Advertising Information |
|
|
|
Per Click - Do They Know Something We Dont?
I have utilized pay-per-click (PPC) advertising since its inception about two years ago. With PPC, the advertiser is only charged when a person actually clicks on their link. The amount you actually pay for each click is referred to as the cost-per-click (CPC). I've got to admit, I was pretty leery at first. But since then I've watched the price of certain search engine keywords skyrocket in excess of $10 per click! The big question isn't how much it costs per click but how many clicks does it take to get an acquisition. I've often asked myself, why would so many companies pay that much money for one single, measly, push of the index finger? The answer is simple - it just works! HOW TO JUSTIFY $10 PER CLICK The advent of PPC advertising has changed Internet marketing forever. It represents a free market in much the same way as eBay -- controlled by a natural supply and demand relationship. For a keyword phrase such as "debt consolidation," the top five advertisers are willing to pay cost-per-click charges of $10.01, $10.00, $9.99, $7.00, and $6.97. My first reaction was, something has to be wrong with this picture - it just can't be! So I looked at the "life insurance" phrase, where the top five range from $7.00 to $3.50. Then there are drugs like "Xenical" that range from $6.76 to $6.74. There are many more examples where the cost-per-click exceeds $6.00, $7.00, or $10.00, but you get the point. The fact of the matter is that while PPC advertising can work quite well - it can also be a flat out failure. When companies are willing to pay more than $5.00 per click, you can be pretty certain that they have figured out how to make it work - otherwise they wouldn't pay those prices. THE SELECT FEW I have seen many situations where PPC will work for one company but not for another in the same industry, using the same keywords. Large and small companies will venture in, bid for a week or two, and then drop out -- never to be heard from again. Some will come in, drive the prices way up then drop back out to obscurity. The select few who are successful have found the secret -- a combination of patience, determination, creativity, keyword selection, management and analysis. They do the math, every day - they manage the bids, every day - they look for new keywords, every day - they analyze the results, every day. It takes a great deal of work to figure out how to make PPC advertising deliver results, and the ones who have are now benefiting - every day. WHAT IS THE COST OF AN ACQUISITION? In order to determine if your PPC advertising is justified, the first thing you need to understand is your current acquisition cost - what does it now cost to acquire a new customer or order? It's amazing how few companies know what their cost of acquisition is. To keep it simple, take your total advertising expenditures and divide it by the number of new acquisitions (orders or customers), that should give you a rough estimate of your cost per acquisition. Similarly, after running a PPC campaign for a month, you take the total advertising expenditures divided by the number of acquisitions. Of course, these raw numbers are not burdened by administrative costs, but they still provide an apples-versus-apples comparison. I have managed PPC campaigns where the average cost-per-click was $0.40 and others where it was $5.00. The key question remains: how many clicks does it take to get an acquisition? If the cost for each click is $0.40 and it takes 200 clicks for an acquisition, then the acquisition cost is $80.00. If the cost for each click is $5.00 and it takes 10 clicks, the cost of the acquisition is $50.00. FINDING THE GAPS Two key points are crucial: (1) how much does it cost to get an Internet acquisition compared to traditional methods? and (2) what is the value of a new customer? In some businesses a new customer is worth $1,000, while in others, only $10. Typically, the cost-per-click reflects this value, but since the market is still very small, there are significant gaps. Remember the "debt consolidation" keyword phrase above? The difference between the first and last cost-per-click was about 30%. On the other hand, there is literally no difference between cost-per-click rates for the keyword "Xenical". From this you may conclude that there is a lot more competition for "Xenical" then there is for "debt consolidation". The opportunity is between the gaps in the 30% differential example. The bidding market for keywords is still so new and untapped that it's rare to have more than three competitors fighting over a specific phrase. The gaps in keyword cost-per-click charges such as "debt consolidation" are the norm and represent tremendous opportunities still available in this media. Right now they are plentiful, and for those few people who take the time to understand this important marketing tool, the time to act is NOW! About The Author Neal Lebar has proven that Internet marketing can generate returns far greater than traditional media. For more information, visit www.innovate-inc.com or e-mail nlebar@innovate-inc.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Can I Make Money Online with the Adsense Program? Sure you can. If you will learn how many other people make money online with Adsense, I mean really study how and ask a lot of questions on marketing forums, there is no reason in the world you cannot make money with the Adsense program. Affiliate Strategies Of Pay Per Click Search Engines Where are your ads being displayed?The Untold Secret Of Pay Per Click Advertising:An often misunderstood reality of Pay-Per-Click advertising is that many times you can't determine where you ad will be displayed once you sign-up with one of the PPC Search Engines. In the incestuous world of online advertising, companies are often simultaneously competitors and partners. Advertising Click Fraud Rampant Online? "Pay-per-click," by far the most popular form of online advertising, recently came under fire as charges of rampant "click fraud" gather steam on the Web.Google and Yahoo! earn the majority of their money through sales of advertising to tens-of-thousands of online merchants, companies, and professional. Google Adwords: Higher Traffic and Sales in 2 Hours or Less! There are various ways to purchase highly targeted advertising at very low prices. Google AdWords is one simple and quick way to to do this. Easy Clickbank Management with the Right Tools Clickbank has been around for years and has earnedan excellent reputation online. They make it easyfor anyone to be able to take credit card paymentsfrom their websites without the hassle of obtaininga merchant account. How to Help Google Make Up Its Mind As an AdSense sponsoring web site, your goal is to have contextually relevant ads displayed whenever a visitor comes to your site. That's the goal, and it sounds simple enough, but sometimes it seems that Google is bent on not cooperating with you in the least. The Future of PPC Advertising For those of you who haven't used a Pay Per Click advertising platform like Google Adwords or Yahoo! Search Marketing, take notes.Pay Per Click advertising refers to a style of advertising where the advertiser pays to display a link, an image, or text ad based on the number of clicks. Tips for Maximizing Your Google AdSense Revenues Despite what you may hear, the Google AdSense program is not for everyone. There are some types of web sites that do poorly no matter how hard the owners try, and there are others that should be doing well but the webmaster simply isn't putting in the effort to make things happen. Paid Search Advertising that Delivers Maximum ROI Paid Search Advertising (also Pay-Per-Click, PPC) has gained a significant influence in the search engine industry over past couple of years. Whilst a traditional search engine optimisation still remains the online marketing strategy number one, more and more e-marketers discovering the potential of online advertising campaigns. AdWords Analyzer Review - Pros and Cons Adwords Analyzer (http://tinyurl.com/a3o3o) is a remarkable keywords research tool that can save you a bunch of time and help compete in the pay-per-click market. Google Adwords - Online Riches Without Owning A Website Or Product! Did you know that you can make money from Google Adwords without having a product to sell, or even a website?It's true and there are many people all around the world quietly making lots of money doing it.So how do you do it?Quite simple really, you become an affiliate. The Click Fraud Problem Click fraud has become a major problem for online marketers. If you participate on Google adwords campaigns or Overture, you must already pay a lot for your campaigns. Expand Your Horizons - Sell Your Professional Services Through ClickBank ClickBank allows its merchants to sell many different types of digital products, but with the proviso that they must be deliverable entirely over the internet within 24 hours of purchase.Most merchants focus on downloadable products (especially ebooks and software applications), although ClickBank can equally be used to sell digital content delivered by email or via membership websites and other online communities. MSN PPC Advertising Behavioral and Demographic Targeting: Killer App. or Achilles Heel? Examining the failures of the web content design of many enormous consumer corporations.When you think of the world's most successful businesses, what names come to mind? Most likely, consumer-oriented giants such as Coca-Cola, McDonald's, Sheraton, Disney, IBM, General Electric, and IBM. Buying Your Way to the Top with Pay Per Click Advertising Imagine if you could advertise ONLY to people who have actually expressed an interest in doing business with you? That's basically what happens whenever a prospective customer or client types a phrase into a search engine that's relevant to your business. But how do search engines decide which sites are worthy of top placement in their search results? It turns out that some of the results are ranked by the search engine's computers while others are simply paid advertisements from companies willing to buy their way to the top using Pay Per Click Advertising. How You Can Make Serious Money Self-publishing With Adsense Some folks may think that self-publishing began with the invention of the PC (personal computer) and others may be convinced that it has really taken off with the arrival of Adsense.It is important to understand what self-publishing is and its' enormous potential to fully appreciate and indeed take advantage of Adsense. The Basics Of Pay Per Click Search Engine Advertising Not long ago, Forbes magazine has reported that pay per click ad sales are expected to increase to at least $8 billion by 2008.There are three fundamental elements that form the basis of a successful pay per click ad program and they are constant monitoring, response analysis, and refinement. How to Make Every AdSense Ad on the Google Network Pay You! Wouldn't it be great if every keyword in Google's entire inventory could be relevant to your site? Imagine that no matter what any person searched for, all of the ads that came up in the SERPs (Search Engine Result Pages) paid you whenever someone clicked on them.Sound good to you? That's great. Targeted Traffic with Pay Per Click's In order for your online business to succeed you must get targeted traffic to your website. No matter what product or service you are selling, if you don't make sales you won't be in business for very long!One of the best ways to get targeted traffic to your website is through Pay Per Click Ads. Advertising Your Home Business With Pay Per Click Can Be Risky An unfortunate byproduct of the pay per click advertising business is click fraud. Many people with an online business spend large amounts of money on pay per click advertising only todiscover that many of the people clicking on their ads weren't really interested in their products or services.
|
| home | site map |
| © 2006 |
