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Pay-Per-Click Marketing

4 Oct, 2009 Phil Marketing, Starting Up

Ever wondered how you can make money from adverts on a website?  What is Google Adsense and why is everyone raving about it?  How it can help not only create revenue, but market your site?.  Here’s an explanation to yield a little light on it all…

Google Adsense and other banner advertising methods run on a method called Pay-Per-Click programs (PPC) and it is the new buzz in internet marketing. The growth in web traffic generated by pay per click services is growing and a marketing option to be seriously considered when starting or maintaining popularity on your website.

With PPC, the way it works is: you pay each time a web viewer chooses your ad listing link and clicks into your website.  It doesn’t cost anything to actually show adverts on a website as it only costs you when they click on the ad, hence the name.

Pay per click targets a very specific audience reaching up to 85% of all internet users in a cost effective and immediate way.  There can be as much as a $20 return of investment for each $1 spent.  Sounds pretty good doesn’t it?

Exactly How Does Pay Per Click (PPC) Work?

The first step is to select which ad agent to use.

The biggestt PPC agent on the web is Yahoo! Sponsored Search.  Yahoo! Sponsored Search has traffic of approx 200 million searches per month reaching about 80% of all the web users.  They have the largest reach on the Web.  Yahoo! Sponsored Search’s pay per click listings appear on Yahoo Search, Yahoo Directory, AltaVista, AllTheWeb, Lycos, InfoSpace, and other search engines and directories, so plenty of streams all across the web to reach your markets.

Although Yahoo has more overall visitors statistically than the mighty Google, Google AdWords is the most productive PPC platform and the place you should start with when you decide to advertise with PPC ads.

Reasons for this, firstly – it is simple to use on the basic level, you sign up, write your ads and manage campaigns with set budgets of what you are prepared to spend per day.  Secondly, in the U.S of A alone, over 80% of all Internet searches will be Google.  With Google AdWords, you can see your ads within a few hours, and you have the ability to start and stop campaigns easily.  You will show your products and services to literally millions of viewers and active shoppers using the massive reach of Google.  Additionally Google AdWords will typically out-perform Yahoo and MSN adCenter when it comes to generating conversions and return on investment.  On Google’s main search results pages?  The ‘Sponsored links’ on the very top and the column on the right are all PPC ads generated by the companies advertising them.  They have paid to be there – some, have paid lots.

The second step is to select your targeted keyword or phrases.

At this point you may want to consider increasing the density of your selected keywords in your website’s HTML code, your site’s description, and title.  However, we have found that you can still experience great returns using PPC without revising your website, as your PPC ads are triggered by the keywords you selected that are tied to your ad and not your web site’s content.  My advice is to spend time thinking of the market you are in and the best keywords to use in your ad campaigns.

The third step is to select your monthly budget.

You basically have to select the very maximum amount that you will pay each month (or day) for click-throughs to your website. How much do you want to appear on users pages?  The higher the budget, the more time you appear.  Simple as. Once the maximum amount is reached, Google will halt click-throughs to your site automatically – basically, they will stop your ad appearing. Additionally, you will select how much you are willing to pay by keyword as well, so you can break it down to £5 per day on the ‘decorating’, £2 per day on ‘painting’, etc.

With Yahoo! Sponsored Search, it’s a little different. With these guys, you will be charged your budget amount on a monthly basis in advance of the ads appearing and then the clicks.  Clicks are then deducted from your account balance on a daily basis as and when people click on them.  Much like a deposit you make, any clicks get deducted form the balance.

With Google AdWords, you can easily ‘pause’ a campaign or change your settings at any time.  There are no minimum monthly spending limits and no contracts or long term commitments, which makes life a lot easier when starting out a new website or company.

Bids and Keywords

There are different costs for PPC between markets and industries.  If you have a popular keyword, in a very competitive market,  be prepared to pay higher than the minimum click amount to get top listing within your category.  The big main players (aka your competition) will have a high budget, so it will be difficult to stand a chance against them.  My advice is to choose keywords that are still within your market, but more of a niche.   Do some keyword researcht to see what’s popular but with less competition.  With both Google AdWords, Yahoo, and Microsoft adCenter, the client with the highest quality score will have their ad shown first.

Google AdWords, Yahoo! Sponsored Search, and Microsoft adCenter have great programs that automatically allow you to manage your budget and to plan your bids effectively.  Check them all out and decide which (if not all) are the best suited for your requirements.

Ad Placement on the Page

With Google AdWords, Yahoo! Sponsored Search, and Microsoft adCenter, an advertiser who pay less per click than another may have their ads in the top position if the ad content is crafted well and receives more clicks per impressions versus than another and has a closely matched landing page to their ad’s theme and keyword list. The ad rank position on all three platforms is determined by quality score and the keyword bid.

Conclusion

Pay per click programs can pay off in increased website traffic, brand identification through impressions, and most importantly in increased leads, prospects, and sales. In addition to exposing your website to a wide qualified audience, targeted click throughs can turn in to sales, generating more profit for your business.

If you are looking for a great way to drive traffic to your website, you should consider adding a PPC program to your advertising plan.



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About Phil

Phil is creative director at PSM Digital but also freelances with web design and SEO in Manchester, UK. He researches and studies online business, along with the latest technological advances and development in design, SEO and social media.

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About The One Man Mission...

Hi I’m Phil. Welcome to my blog, where you’ll find useful information on web design, development and online business advice.  I’m a creative director for a digital agency in Manchester, UK and I also freelance web design also.  Currently setting up and developing a new online business, I am here...

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