Pay-per-click
advertising is
one of the most cost-effective methods of getting leads known
to Internet business owners. It gives you instant traffic, and
allows you to test your business model in real time.
At
the same time, pay-per-click advertising (or PPC) is not as
simple to use as the PPC companies will have you believe. If
you jump into the system without preparing for ‘tracking' your
results, doing deep keyword research, establishing your ROI
and most importantly, testing your ads, you'll lose a lot of
money really fast.
Before
we start talking about the major PPC engines, here's a brief
overview of what you need to know.
| The
Basics Of Pay Per Click |
There
are some terms that you should know if you want to understand
any discussion on PPC. Some of these are self-explanatory, some
you might have heard before. Either way, go through this section
and make sure to read those parts that you don't know of.
In
the PPC advertising model, you have three core elements
– keywords , ads ,
and bids . These three elements are combined
with ‘ placement ' to create an advertising
model that displays ‘relevant' ads on search
engines (in response to keyword searches), portals and websites
that opt to display such ads on their pages (the ads to be shown
are determined by a keyword analysis of the page).
For
a PPC campaign, you need to know the keywords
that you are targeting. For example, for a niche site that promotes
a time management product, I would create a list of
keywords that included keyword groups containing terms
related to time management, productivity, saving time, self
improvement and maybe even business soft skills. As I've told
you before about keyword research, you should have a big
list so that you capture most, if not all, of your
target traffic.
The
next step is to write the ad copy for the
ads that will be displayed for your searches. The ad copy is
extremely important because along with your bid amount, this
will determine the ‘conversion rate' (explained below) of your
ads. Write concise, compelling ad copy that highlights the benefits
of your website / product, and avoid fluff.
Once
you've written your ads, it's time to bid .
The bidding mechanism differs from PPC engine to engine, but
the idea is the same – your bid amount is the maximum
cost (usually calculated in U.S. dollars) that you
are willing to pay for each keyword. It's important to know
how much you can afford in terms of bidding costs so that you
avoid going into bidding wars
with your competitors, and also so that you don't spend more
than you make through this campaign.
Cost-Per-Click
Cost-Per-Click
( CPC ) is the amount you pay each time a potential
customer ‘clicks' on one of your ads that they see on their
search engine results or on websites. This is often less than
the maximum bid amount you set for each keyword.
Conversion
Rate
Conversion
Rate is the ratio of clicks over impressions
(the number of times your ad is displayed on searches
or page loads on websites). A typical conversion rate is between
2 to 3 percent – that is, for every 100 impressions, you get
2-3 clicks on your ads.
Conversion
Rate is closely tied in with the quality of your ad
copy , and also with Placement , which
I'll discuss next.
Placement
If
there is more than one person bidding for a
keyword (as is almost always the case), the placement
of the ads (which ad comes in on the first slot, which
comes in on the second, etc.) is determined by bid amounts
of each competitor. The higher your bid, the better your placement
(Google adds the conversion rate into their placement calculations,
and I'll tell you how later). Your conversion rate to a certain
extent depends on how high your ad is placed on the ‘rankings'
and this leads advertisers to place high bids just to rank at
the top. The trouble with this approach is that you might enter
into a bidding war with your competitors and
lose a lot of money.
Tracking
Tracking
refers to measuring which keywords are bringing you the best
leads or sales, and which keywords are bringing you
‘window shoppers' – people who are ‘compulsive clickers' and
don't buy or sign up. Tracking your ad campaign will help you
further fine-tune your ads and improve your ROI.
ROI
Your
Return-on-Investment (ROI) is determined by
how much you are spending over how much you are earning in net
profits from your ad campaign. It's important to establish a
base ROI before your start your ad campaign – assume
a conversion rate of 1 percent – so that you don't over-spend
and are able to run this campaign within your budget.
The Pay-Per-Click
World
Currently,
there are two major PPC engines, Google
AdWords and Overture
(now known as Yahoo!
Search Marketing ). While there are many alternatives such
as Espotting (now Miva), MetricsDirect and Kanoodle, the top
two PPC engines are a class apart when it comes to delivering
results.
However,
one of the first pieces of advice you'll hear from most people
is that bigger PPC engines such as AdWords and Overture are
too ‘expensive' to break into (with CPC for
top positions easily passing $3-$4 for many keywords, and reaching
$10 for really competitive keywords).
In
reality, if you are just starting out, it's critical that you
pick one of the top two PPC engines. Why?
Traditionally
marketers judge PPC engines on the following criteria:
- Reach
– How large your potential target market is.
- Cost-per-click
- Quality
of traffic – Do the leads fit your customer profile?
Are the willing to spend on your products?
- Quality
of service – The tools and help offered by the PPC
engines.
Overture
and AdWords beat their competition on all of these metrics except
CPC. However, the benefits of ‘cheaper' clicks are more than
compensated for by the ease of use of the big
two, and more importantly, as any PPC expert will tell you,
the quality of traffic from Overture and AdWords
is far better than from other PPC engines.
Overture
was purchased by Yahoo!, and recently renamed to Yahoo!
Search Marketing. The name's not catchy, but with Yahoo!
Behind the ‘second-largest' PPC engine on the Internet, you
can expect that the quality of traffic and services will improve
over the next year. Yahoo's acquisition of Overture is the single
biggest reason advertisers have started paying attention to
Overture again, although Google AdWords still commands leading
respect.
Overture
is a manually edited PPC engine. When you write
ads for your website, these ads (and the keywords you specify)
have to be approved by human editors before they can appear
in search results on Overture partner websites. While this ensures
that the quality of ads remains above a certain level, this
is also a hassle, as new ad campaigns can take several days
to be approved, and there is a distinct lag between
the time you plan to improve a section of your campaign (for
testing) and the time those changes actually go live.
Overture
keyword bids are totally transparent, meaning
that any advertiser can see at any time what other advertisers
are paying for that particular keyword. This is both useful
and harmful – advertisers can accurately target their ‘ad placement'
positions, but knowledge of the top 2 or top 3 bid amounts can
easily lead into a bidding war, and competitors undercutting
your ads by posting a bid that is $0.01 higher than yours.
Google
AdWords is the leading PPC engine on the Internet, although
it's closely followed by Overture. Combined, the two PPC networks
are distributed on nearly every search engine or portal.
Google
is totally automated – your ads go live within minutes
of being written. This is one of the two significant
advantages AdWords has over its competition – no need to wait
for ‘approval' of your keywords and ads, which can take a few
days on other PPC engines.
Google
AdWords, like Overture, does not charge you your maximum bid
amount, but just one cent more than the bid lower than yours.
On the other hand, AdWords bids are not transparent like Overture
– bidders have no idea what their competition
is bidding. This reduces the threat of bidding wars.
The
second advantage of AdWords is that it includes conversion
rate calculations in its ad-ranking algorithm. Simply
put, your ad may rank higher than your competitors' even if
you are bidding lower, just because you have a higher conversion
rate. AdWords rewards ads that are better written, and thus
provides a subtle barrier against ad spam.
PPC
advertising has become the ultimate marketing tool for
testing new ad campaigns, business models and landing pages
without spending too much money. Where else can you test a sales
page by sending it 100 leads for $5?
If
you are looking to promote your website / product
effectively but cannot wait for your search
engine rankings to show on Google or Yahoo, you should seriously
consider PPC advertising as an advertising tool that not only
brings in instant traffic (and sales), but is a hedge against
ranking fluctuations by ensuring that you stay on the top page
for your target keywords.
This is
just a general overview of Pay Per Click marketing/strategies.
Stay tuned for Part 2 coming soon, where I'll go into some much
more advanced techniques to really ramp up your traffic, all
the while spending less money!
All the
best,

Brad Callen
Professional SEO
http://www.seoelite.com
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When
you think of SEO tools, the first thing that comes to
mind is paid-for, powerful programs like SEO Elite. The
fact is, there are many no-cost, small-scale and highly
useful SEO tools available on the Internet. Looking for
keywords? Got it. Looking to check your website's rankings
for particular keywords? Got it. Link popularity? Got
it. Keyword density? Got that as well.
Free
Link Popularity Check
The
folks at Axandra have a useful tool that you can use to
check the link popularity of any number
of websites across several search engines. A must-have
tool to keep a regular check on your websites.
Find
out more about Free
Link Popularity Check.
NicheBot
If
you are looking to do keyword research,
WordTracker is the tool of choice for building huge keyword
lists. But the service comes with a price, and if you
are looking for a free alternative that still packs a
decent punch, NicheBot is the tool you should be using.
It uses both WordTracker (the trial version) and Overture
to generate keyword lists, and pulls data from Google
to give you basic competitor information and search results'
numbers.
NicheBot
also allows you to save and export your
selected keywords, making it the ideal choice for new
webmasters who don't want to invest in a professional
keyword research service like WordTracker.
Visit
NicheBot.
Digital Point
With
an Alexa rank of 525 (as of June 2005), DP is second only
to WebmasterWorld in this article in terms of popularity.
Digital Point boasts a vast array of webmaster and SEO
tools, including keyword
research tools, back
links tools and keyword
position tools. Registration, although free,
is required to use many of these tools. Definitely an
excellent choice for business owners who prefer a hands-on
approach to their search engine marketing campaigns.
Digital
Point also has a vibrant forum community,
which has sprung up around the popularity of the various
tools and services that DP provides.
Visit
Digital Point
Tools and Digital
Point Forums.
SEO
Chat
SEO
Chat is not only about quality, insightful arguments and
a vibrant forum community. They also have an amazing list
of practical webmaster tools that focus
on every small aspect of your SEO needs. Need to check
the PageRank of every search term on Google? Or need an
easy way to generate Meta Tags? One of their best tools
is the Keyword Density tool that analyses a given web
page and returns the keyword density values for all one,
two and three word phrases.
SEO
Chat Tools also includes nifty keyword tools not usually
found elsewhere, such as a tool for generating
spelling mistakes (a significant number of searches
on search engines contain spelling errors) and a tool
for ordering and sorting your keywords list.
Visit
SEO Chat Tools.
SEO
Tools
When
you have a whole web site dedicated to
providing quality SEO tools for free, you know that you
are getting a great deal. SEO Tools betters many of the
‘regular' SEO tools by mixing up the staple tools such
as keyword density and backlink analysis with search engine
spider simulations and similar page comparisons, as well
as that almost forgotten tool for checking your website
in different resolutions (you still do
that, don't you?).
Visit
SEO Tools.
There
are many other excellent SEO tools available for free
on the Internet:
- Good
Keywords – A resource for analyzing your
competition for your primary keywords so
you know what they are doing, and what you need to
do on your own web site to beat them.
- Keyword
Tumbler – An unusual resource that gives you all
possible combinations for each key phrase
in your keyword list. Good for a PPC campaign.
- Webmaster
Toolkit – Another collection of SEO tools targeted
towards the practical and not-so-professional
SEO webmaster.
As
you can see, there are many, many quality SEO resources,
forums and tools available on the Internet for free.
The
question is, what are you going to do about it?
If
you don't participate in forums, pick one of the 4 (5
if you include Digital Point) from the list above and
browse around. Find a topic you want to participate in.
Have a problem you want a peer's opinion on? Register
and make your first post. Just a simple
step towards interacting with the webmaster community
will take you a long way towards helping you build your
business.
Anything
in the SEO tools list that you think you can use? If you
are limited to Overture searches for your keywords, try
using NicheBot, and then take your results to Keyword
Tumbler. How do you manage your website's progress through
the search engines? Take Digital Point or the SEO Chat
tools for a spin.
Whatever
you do, take something away from both
of these lists, and I can guarantee that you will improve
your search engine rankings in a significant way.
Remember...
YOU can use any of these lessons on your own website.
You can send the lessons out to your email list.
You
can even add your affiliate link for SEO Elite, to the
lessons and earn $74 for every person you refer that purchases.
Below
you can sign up for the SEO Elite affiliate program where
you can earn $74 for every referral:
Click
here to sign up for free!
Keep
your eyes peeled for the next lesson, and keep those lesson
suggestions coming!

Brad Callen
Professional SEO
SEO Elite: SEO Software
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Your Free Copy of 7 Days To Massive Website Traffic!
by Optimization Expert, Brad Callen |
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