GeekBusiness - Using Pay-Per-Click Advertising to Drive Traffic to Your Site
Using Pay-Per-Click Advertising to Drive Traffic to Your Site |
Pay Per Click Networks
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Pay per click (PPC) advertising offers webmasters the ability to target potential
users with effectively worded text ads. The text ads will only show up when users
search for search terms that the webmaster chooses. The webmaster only pays when
a user clicks on the text ad. The benefits of PPC ads include:
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ROI - PPC advertising offers the most direct ROI calculation
of any advertising type. As a webmaster, you can track an individual
click through your site (with very little coding changes required on
your site).
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Qualify users - By choosing very specific search terms to buy
PPC ads for, and then making your advertisement text even more specific,
you can try to eliminate the possibility of users clicking on your PPC
ad who will likely not buy your products.
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Ease of testing - Most PPC networks allow for changing of bid prices per
term, changes to terms being paid for, and changes to your text in a
matter of hours. With this flexibility, you can test any of these changes
for effectiveness with little effort (try that with banners or other
graphical formats using a CPM buy method).
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Calculating ROI for PPC ads is accomplished by matching up the number of paid clicks
with the revenues generated by those same paid clicks. For example, if 100 clicks
on a given PPC ad cost the webmaster $10.00, and revenues from those 100 clicks were
$20.00, ROI would be 100%. Put more simply, every dollar spent on this particular
PPC ad returns two dollars in revenue. Obviously this calculation should be done on
a larger sample then 100 clicks, but the math is the same and the results should
be used in determining future PPC expenditures.
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PPC ads that with a negative ROI should be adjusted in some manner. Potential
adjustments include:
- Change the wording of the PPC ad to more effective qualify users
- Choose search terms that more effective qualify users
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Lower you bid for given search terms (less traffic with a ROI may be more
beneficial than more traffic with a negative ROI -- this really depends on
whether your site relies on first time visitors for revenues)
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Remove the PPC ad -- why run a PPC ad that will never generate enough
revenues to cover the cost of ads unless branding is the ultimate goal
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