Internet Marketing Ideas – Pay-Per-Click Campaigns

January 3, 2007 at 2:10 pm 1 comment

PPC or Pay-Per-Click advertising is a way to get instant leads and this also appears to be a very cost-effective method adopted by webmasters for quite some time now.

If you wish to test your business model and you need instant traffic on your website for this purpose, PPC helps you achieve this in real-time. However there are certain factors you need to consider and prepare for before entering into a PPC campaign to get effective results. PPC campaigns if not handled properly can result in huge losses for the business. Surely you would not like to start your new business with a negative balance sheet.

You need to define your processes to track the results, decide on the ROI (Return-On-Investment) expected and the keywords you intend to use for the campaigns. PPC campaigns are cash-eating machines and you can lose a considerable amount of money with in-effective campaigns.

Overture (Now Yahoo Search Marketing) and Google Adwords are the two major PPC advertisement agencies which display targeted ads on their search result pages (SERPS)

So let us look at what are the basics of PPC.
A standard PPC campaign consists of elements like bids, ads, keywords and placement. When a user executes a search query on any search engine, the PPC model combines the keywords, ads and bids to place relevant ads on the search results page for the user.Besides Search Engines, several Portals and large websites display PPC ads on their pages.

The core element for success of a PPC campaign is the list of targeted keywords to bid for. If you do not research and analyze your keywords before the campaign, you may lose the effectiveness of the campaign. Make sure that you cover all the possible keywords which can get you targeted traffic for your product or service.

How to research for Keywords?
Overture provides with a helpful tool wherein you can check the number of searches done in a month for specific keywords. Click here to access the Overture Keyword Tool.
Search for your relevant keywords and you can define a long list of keywords along with their approximate searches done in a month for those keywords. You can also check the current bid for those keywords by searching on Overture. This will help you budget your marketing campaign for the keywords you have finalized.

The second step in this process is to write a very effective AD copy. Your ad copy will determine the success of your campaign as this is what will make the user click on your ad.

Your Ad copy should be extremely compelling and should highlight the benefits of the product or service. Avoid writing unwanted stuff and bluff. Once you are ready with the list of keywords and corresponding Ad copies, its time to bid for positions on the PPC campaign manager websites. Though each bidding process is not the same on every engine, the concept remains the same The maximum cost which you are willing to pay for a single click on your ad copy is your bid amount.

Be aware of what you are willing and capable of paying for your PPC campaign, use the technique explained above to budget your campaign and do not indulge into bidding war with your competitors.

The metrics used to calculate what you pay for each click is called CPC (Cost per click).

As explained earlier, there are two major PPC engines, Overture (Yahoo Search Marketing) and Google Adwords. These two are the largest and way ahead of their competition in delivering results. Being the most popular engines, they are also being termedas the most expensive PPC campaign providers their the bids for high traffic keywords going as high as $8 to $10 per click. Imagine the hole in your pocket if you don’t manage the campaign effectively.

To start with you need to judge your marketing campaign by signing up with one of these engines. One of the deciding factor shall be the CPC of your keywords on both of these engines as otherwise they are almost similar in terms of Reach, Quality of Leadsand Quality of Service Tools available for webmasters.

On Overture, your campaigns will have a time lag before they go live as all your Ads are manually edited by Overture. The best part of being with Overture is that all the bid amounts are pretty transparent. You can view the exact amount websites are paying for each click for specific keywords. This helps you a long way to decide your budget for the campaign. This can also lead the advertisers into a bidding war as the positions and their corresponding bid amounts are clearly visible on Overture.

Google Adwords on the other hand takes your campaign live in minutes of submission and you need not wait for any approvals of your Ad copies. Unlike overture, where you pay the exact bid amount defined by you for a position, Google does not charge you your maximum bid amount. It only charges you one cent more than the bid which is lower to yours. This takes care of the bidding war scenario as advertisers do not know what their competition is bidding for. Adwords is a complete automated process and it isvery easy to get started on Adwords.

Also Google’s Ad ranking algorithm has something called the conversion rate calculations by which, if you have a higher conversion rate, your Ad may show up at a higher position even if you are bidding lower than your competitor, Write exceptional Ads and achieve more conversion on your Ads to improve your ROI with this concept.

Although Search Engine Optimization is very important for every website, you can easily test your business model by PPC advertising wherein the results are immediate and at a low cost.

If you have a new website and it is going to take time for your free listings to show up on SERPs, you can try this model to promote your product or service instantly.

Let me know if you want to know more about PPC and how to manage campaigns effectively, I shall be happy to share some more knowledge on this subject.

Till then,

Cheers !


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Entry filed under: Internet Marketing Ideas.

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1 Comment Add your own

  • 1. dtawde  |  November 14, 2008 at 7:02 am

    hi vijay,

    Its nice article on PPC, i would like to more about the PPC. i have visited to ( and found interesting.

    please revert with more information thanks and regards Digamber


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