Search engine optimization can take a long time to show results. The Google sandbox alone can delay optimization results by 6 to 8 months. So what can you do to get traffic on hold? Pay Per Click [“PPC”] campaigns fill the time gap. This article discusses the basics of PPC advertising.
What is PPC?
The PPC search engine allows you to bid on placement in search results. Search engines like Google, Yahoo, MSN, AOL and most others boost their organic search results with sponsored ads. If you search on Google, the blue links at the top and the small ads on the right side of the search results are PPC listings. In one form or another, similar listings appear on every major search engine.
How does it work?
When you use PPC, you will be bidding to rank in search results under specific keywords. Instead of optimizing your pages to appear high in the listings, you simply pay for the position. While this may sound great, keep in mind that you are paying for the listing, and you need to keep a close eye on your ROI.
To get started, you need to open an account with the relevant PPC. The two biggest PICs, are Google Ads and Overture. You will need to register with PPC, provide a credit card number and, depending on PPC, deposit money into the account. Next, create ads with a headline, body text, and a link to your website's landing page. The title of each ad should match the specific keyword you want to promote. If possible, include the keyword in the actual title. Finally, you will be asked to bid for placement in the search results.
Placement offers are not as simple as they sound. Ideally, your ad should be in the top 3, but never below the 10th position. However, this must be balanced against the return on investment of the campaign. If you're selling a product that makes $10 per sale, you probably can't afford to pay $0.90 per click. If your site converts 1 out of every 100 visitors into a sale, you'll spend $90 on each sale. Obviously, this will work very well. The only exception to this situation is a business with recurring revenue.
If your site charges clients a recurring monthly fee, you may be offering more than your immediate profit margin. To do this safely, you need to determine how long the average customer stays on your website. For example, if you make $10 per month and the average customer pays for 5 months, the total profit will be $50. In this situation, you can spend $20 or $30 to acquire a customer and still make a profit. To properly manage a PPC campaign for a recurring fee website, you need to calculate the profit per customer each week to protect yourself.
Cons of PPC
Why not use a PPC campaign instead of search engine optimization? There are many reasons. First, you pay per click with PPC, which requires a budget and can affect your cash flow. Second, PPC bids are competitive and this translates into higher costs, so much so that it can be difficult to turn a profit. Third, many people simply don't click on PPC ads, with the figure being as high as 20 percent. Fourth, you run the risk of people clicking on your ads with no intention of buying, whether they're just browsing the site or trying to use up your ad budget.
PICs definitely have their place in online marketing. Manage your campaigns with an eye for detail, and you should be fine.
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