Is Pay Per Click A Money Machine Or A Money Pit?

By: Tim McCoy

PPC - Pay Per Click - Pay-Per-Click!

Come on in the water is just fine!
Ever go to the ocean and run out to the water just itching to get in and have a blast in the water? If you listen to all the hype, PPC is much the same. Everyone touts that PPC is the easiest way to make money on the internet. The inference is Pay Per Click advertising has the ability to increase traffic to your site thus increasing your sales. An increase of traffic and sales is fantastic, but "What's the price?"
It's So Easy, Anyone Can Do It!
Opening a paid search account and adding a payment method is so easy it only takes a minute or do to do it online. But "Where do you go from there?"
Don't Use Keyword Lists That Are Too Large And Not Targeted!
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->Selecting large lists of keywords will attract tons of traffic. The problem is most of these keywords are non targeted. What that means is most of the searchers that land on your page won't be finding exactly what they want. You'll be paying for a ton of clicks and getting a very low conversion rate. Conversion rates are small enough to begin with. Start focusing on smaller more targeted lists. More qualified traffic, even though it is less traffic, should be more profitable.
CTR vs Conversion Rate!
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->Focusing on CTR (Click Through Rate) means nothing if that traffic does not produce actions (ie. SALES). CTR is only an indicator of the paid searches success. This is what costs you money in the end (This is the "pay per click" concept.) Start paying more attention to your paid search Conversion Rate to get a better idea of whether you are moving in the right direction or not. If your profit on an item is $30 and your conversion rate is 1:100, your CPC (Cost Per Click) better be a lot less than $0.30. On the other hand, if you could increase your conversion rate to 10:100, your CPC could increase to Almost $3 a click.
What is each vistor worth vs. Conversion Rate?
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->The amount of revenue you earn for each visitor that arrives at your website represents the "Value Per Vistor." Your average CPC (Cost per Click) is the amount you spend on average to get one visitor to your site. Comparing the two shows if you are making money or flushing it.
If your Average CPC is less than your Value per Visitor then you are making money. The further the two numbers are apart, the more money you are making. Conversely, if your Avg. CPC is more than your Value per Visitor then you are in the RED.
Use One Ad-Group For Multiple Sets Of Non-Related Keywords!
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->Don't set up just one Ad Group and load it with multiple sets of non-related keywords! It will curb your ability to target your visitors based on the ad copy and probably cause your quality score to suffer. It'll cost you more money and ad position.
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->Use Just One Ad Copy Variation Per Ad Group!
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Ad variations help to tell you what ad-copy really converts. You should use at least two different ad copy variations per ad group. This is a benchmark and more variations are even better.
Running different ads against each other across one ad group helps you learn what prompts your market to act and more importantly what triggers them to buy. Doing this allows you to test what works and what doesn't. Then you zero in on higher conversion rates and start turning a profit.
Turn Off "Content Network!"
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->Turn off the "Content Network" option (on by default), untill you have some sales.
Traffic from the content network usuallyconverts at a much lower rate. One of the ways to increase that content network conversion figure are combining placement targeting with proper landing pages. This takes a lot of time to get right and until you are sure you have a sucessful campaign you shouldn't waste time building more pages. The more you leave the Content Network turned on, the more money you'll spend plus the conversion rate will be less.
Set A Daily Budget!
<!-- @page margin: 0.79in P margin-bottom: 0.08in -->Set a daily budget unless you want to wake in the morning with your credit card tapped out to the max. Come up with the amount you are willing to invest in advertising per month and then take that amount divided it by 30 or 31 (days in a month). Then allocated that daily advertising spent across the number of campaigns you have.
Build Different Landing Pages!
Furthur diagnose the effectiveness of different campaigns is to build a couple of different landing pages and tracking which one converst the best. Set different keywords for these landing pages and watch to see which ones convert best.
PPC is a wonderful way to drive traffic to your website and your product, however, it will likely be very expensive unless you target your campaigns. To learn more in how to target your campaigns and be a successfull Internet Marketer visit the site below

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