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What is PPC?
Pay-per-click (PPC) advertising is when an advertiser
pays for each qualified click that sends a search engine
user to the advertised web page. PPC requires daily
management of bidding on key words or key phrases chosen
by our client and AQABA. There are many PPC advertising
services available to choose from. Google AdWords and
Overture are probably the two most popular in use today.
Search engines allow you to buy or “sponsor”
a top position in the search engine results for the
particular keyword or phrase you choose. The search
engines can deliver targeted and qualified visitors
to your web page at an economical advertising cost when
managed properly with a clear objective. PPC provides
our clients with assurance that their ad is being delivered
to the targeted audience.
PPC advertising uses a bidding process where the highest
bidder or highest activity value, depending on the search
engine, for a particular keyword or phrase will receive
the top placement on the search engine results page.
The targeted search engine will place your ad text in
a special location on the results page when a user searches
on your PPC keyword or phrase search term.
As an example, Google AdWords appear on the right side
of the search results page while the organic (i.e.,
organic) search results appear on the left side of the
page. In the case of Yahoo! Search, the sponsored ads
appear on both the left and right side of the search
results page. The top 2-3 sponsored ads appear in the
top positions on the left side above the natural search
results and the next 3 sponsored ads appear at the bottom
of the left side and on the right side of the search
results page along with other sponsored ads.
PPC advertising is a good way to obtain web page visitors
when you don’t have a top ranking web page to
get you the necessary natural search engine placement.
Search engines deliver a huge amount of visitor traffic
to the sponsored advertisers especially in the competitive
keyword markets.
PPC can be an excellent method for getting visitor
traffic to your web site but it can also cost you a
lot of money. You need to be extremely careful and monitor
your cost of using PPC versus the revenue generated.
As the old saying goes, do the math. Calculate your
return on investment (ROI) on a continuous basis to
determine if you are making a profit on your PPC campaign.
As an example, assume your bid for a particular keyword
is $0.10 and the product you sell has a profit margin
of $15 after product costs (excluding PPC costs). If
your conversion rate (the number of visitors that buy
your product) is 1.0%, only 1 of your visitors will
buy your product out of 100 visitors. Your net profit
for every 100 visitors from your PPC campaign will be
$5 ($15 profit margin less $10 for PPC).
It is a good idea to experiment with the different
PPC search engines to find the one that works best for
you. In addition, you need to spend the necessary time
and effort to select the keyword or keyword phrase that
has a profitable conversion rate for your specific web
page. A higher conversion rate implies more profits
to you.
AQABA evaluates the performance of your PPC campaigns
on a daily basis. Are you leaving money on the table
by not adjusting your PPC bid to a lower level? Should
you increase the bid price to get more traffic? Is your
conversion rate changing? What are your competitors
doing? Should you be considering different keywords
in your campaign? PPC advertising is a great way to
get traffic but at a definite price. PPC requires a
thorough knowledge of the search engines that we use
and constant monitoring and evaluation of your campaigns.
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