Pay per click or PPC ad campaigns can be very lucrative but you can also lose your shirt! PPC is exactly what it sounds like, you agree to pay a specific amount of money for each time someone clicks your advertisement. This is regardless of whether they actually make a purchase from your site. The model is based on the idea that after so many clicks, you will make a sale and that sale will more than compensate you for the ad revenue you just spent. The problem is, it does not always work that way!
You would think it a simple concept to begin any PPC campaign with the end result in mind, however most of the time advertisers skip over this important step. Or worse, they may believe that increased traffic is the only goal to be concerned with, not the case at all! You first need to ask the question of what this PPC ad campaign needs to do for your company. This will vary depending on your business model, but in the end, it should have a positive impact on your bottom line.
Choose Keywords Carefully
The old adage you get what you pay for may not apply to keyword choices, especially for a PPC ad campaign. Be careful of bidding on high priced keywords or phrases, the competition is stiff and you simply have to ask yourself if the top spot is worth the extra dough. Just because your ad comes up first does not ensure any better click through rates. Weigh the cost of this ad position against potential returns before making a decision.
Never start any type of ad campaign without the time and tools you need to track effectiveness, particularly with PPC ads. You need to watch these campaigns carefully to measure how well they are performing when it comes to your end goals. This will not only save you money over the long haul it is also a very valuable learning experience. You probably plan to be in this business for some time to come and the better you are at structuring your PPC ad campaigns the more money you will make.
Many advertisers work diligently to lower the cost per click and understandably so however you should focus more on the cost per conversion. It only makes good business sense to achieve the most number of sales (conversions) for the least amount of advertising revenue. The above tips and steps will help you begin doing that very thing.
PPC ad campaigns are a useful tool, when you understand them and implement them correctly. If you go out and recklessly bid on what looks to be the best keyword or phrase with no plans for tracking or optimizing you could quickly be bankrupt. There will be times when you do want the high dollar phrase but you need to understand the dynamics of the entire process to make that call.