Setting up and launching a paper click search engine campaign is an effective method for bringing targeted traffic to your website. It provides instant results as well as ensures that the visitors will have some interest in the topic of your site.
But the key to ensure that a pay per click campaign is profitable, is to closely monitor it.
Monitoring is important because it help you see what the best ways of spending your PPC ad dollars are. By monitoring your Google Ad Words and Overture campaigns you will notice trends that would have otherwise eluded you.
For instance, by closely seeing the click through rate of your key words you will know which key words you should be spending more money advertising on.
Lets assume that a well put together site can experience a 1% sales conversion ratio. Meaning that for every 100 visitors to a site there will be one sale. The owner of that site can determine that he or she must bring 100 visitors to the site to make a sale.
If the site owner is bidding .10 a click for the term wholesale on Google Ad Words, then the actual cost of making one sale is $10.
As long as the average profit per sale is over $10, this campaign is profitable.
Now comes the monitoring facet. If the site owner is receiving a 2% click through ratio on his Google Ad Words campaign, it means that for every 100 times the ad is shown on Google two people click on it, and are taken to the site.
The site owner can now start more campaigns for wholesale related terms because he knows that the Google Ad Words campaign is profitable.
Or he can even cut his bid by half, knowing that even if his click through ratio drops by half, he will still receive a 1% click through ratio which is considered to be standard.
By cutting his bid in half, the site owner will be saving $5 for every 100 visitors to come to his site, and by virtue of his savings, earn an extra $5 on every sale.
As you can see, closely monitoring a pay per click campaign can yield an increase in a sites profitability.
Donny Lowy has set up to provide free online advertising for small businesses.
The Internet has enabled people with even the most eclectic interests to find and buy products that interest them.
Conversely, it has also enabled online businesses that cater towards the smallest niches to prosper.
The reason the Internet has enabled this two way need fulfillment to take place is because of its very nature.
People can search for what they exactly want by typing in words or phrases into search engines like Yahoo, Google, and Overture. These search engines will then deliver back listings of results that contain those words, or pertain to the topic that the searcher is looking for.
Pay Per click search engines allow advertisers to take advantage of this opportunity by enabling them to bod on the exact key words, and key phrases, that they want their ads to be shown for.
But this opportunity is also a double edged sword. How many times have you searched for product, or information on a topic, and been shown irrelevant ads
Think of the times that you clicked on those ads because you were curious to see what the advertisers were offering.
While as a searcher this is acceptable, the same action from an advertisers point of view is detrimental to his business.
Those clicks are not from potential customers, but from curiosity seekers.
For a Google Ad Words, or Overture, pay per click campaign to be effective, it must receive a high percentage of serious potential customers.
This can only take place if the ads are shown to serious prospects.
How can a Google Ad Words, or Overture, advertiser accomplish this
He must use phrases that narrowly define his market.
Instead of simply using the word closeout for my site, www.closeoutexplosion.com, I will use the phrase closeout products.
A used car dealer would want to stay away from bidding on the term cars, or even used cars. These words are too generic and do not indicate who might be conducting the search.
Instead the used car dealer would want to use phrases such as, used Honda cars, or used cars for sale.
These phrases will deliver a smaller amount of traffic, but the traffic will be more targeted.
A rule of thumb in online advertising is that the more targeted your traffic is, the more sales you will see as a result.
Donny Lowy has set up to provide free online advertising for small businesses.