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PAY-PER-CLICK MARKETING
WHAT
IS PAY-PER-CLICK MARKETING?
Pay per click means visitors click through to
your site from a link, which can be tracked, and
you are billed for each click. Paying per click
is sometimes seen by some as a middle ground between
paying per impression and paying per action. When
paying per impression, you assume the risk of
low-quality traffic generated by the publisher
(the site on which your listing appears). When
getting paid for actions, the publisher assumes
the risk of low-converting offers by the advertiser.
In the PPC model, the publisher does not have
to worry about the sales conversion rate of the
target site, and the advertiser does not have
to worry about how many impressions it takes to
attract the specified number of clicks. You want
people to find your website, and use it to buy
your products and services. Unfortunately, your
traffic is coming in drops instead of waves. Pay-per-click
search engines can be an effective element in
a campaign to deliver qualified website traffic.
BENEFITS OF PAY-PER-CLICK SEARCH ENGINES
Only pay for visitors, unlike banner advertising?
where you have to pay each time someone sees your
ad, on pay-per-click engines you only have to
pay when someone clicks on your listing. So you
are getting guaranteed visits.
Pay-per-click engines provide highly targeted
cheap? visitors. Often you can buy a good ranking
on a decent keyword for as little as 1 cent or
2 cents per click (although some engines have
now restricted the minimum bid to 5 cents). Popular
search terms can cost much more on the big pay
per click search engines Even still PPC engines
are one of the most cost effective way of driving
TARGETED people to your site.
EXAMPLE
Say you're selling the latest hi-tech plasma monitors
on your website. You have concluded that 1 out
of a thousand visitors buys a $5,000.00 monitor,
and that your margin on that sale - after all
opportunity costs are accounted for - is $350.00.
Well, pay-per-click can easily deliver thousands
and thousands of visitors to your site, and these
visitors would all be searching for plasma monitors.
That's a good thing. But in the example we mentioned,
pay-per-click buying only makes sense if you can
get a thousand visitors for less than $350.00.
That's the simple version. Of course, the traffic
you're getting now is from a variety of sources,
some of which are more or less likely to deliver
buyers, so your 1 per 1000 number must be taken
with a grain of salt initially. One terrific aspect
of pay-per-click search engines is that they allow
you to easily measure which searches deliver buyers,
and over time, you can customize your campaign
to increase your click-to-buy rate.
For example, if you start by buying first place
"plasma screens" for $1.36 per click-through
and by buying "plasma monitors" for
$1.61 per click-through. After 1,000 visitors
at $1.36 each, you have sold one monitor and made
$350.00. Unfortunately, those visitors cost you
$1,360.00, obviously too much. Perhaps the 1,000
visitors who found you by searching for "plasma
monitors" resulted in 4 purchases, earning
you $1,400.00. You're still not profitable, but
you're getting closer. You next decide to try
buying some less expensive and more specific phrases,
such as "toshiba plasma screens" and
"toshiba plasma monitors", each of which
sell for only 5 cents per click through. It takes
you longer to get the 1,000 visitors, but your
click-to-sell rate is slightly higher, because
you're dealing with consumers who already know
what they're looking for. Say you sell 3 monitors
to those 1,000 visitors. You've made $1,050.00
and spent $50.00.
OUR METHODOLOGY
1. Deciding the Search Terms to be used
Selecting search terms is by far the most important
aspect of using a pay per click search engine.
Ideally you want all traffic to your site to be
"good" traffic. Before we go on, it's
important to realize that not all traffic is good.
Good traffic is considered to be those site visitors
who are truly interested in your product or service.
We always keep in mind the following when deciding
on what search terms to use.
What product or service do you sell?
Who are your existing clients?
Who are the clients you would like to have?
2. Optimize the pages submitted to PPC
Search Engines
If you have read the articles on search engine
optimization you will have learnt that it is more
likely visitors will click through if their search
term is in the title and description of your listing
this is because it appears to be exactly what
they were searching for. We optimize the pages
submitted to PPC engines according to the search
terms chosen as per Step 1 above.
3. Tracking Your Visitors
To determine whether or not pay per click advertising
is working for you, you should track your results.
In addition to using the reports generated by
the pay per click search engine, we also add a
simple tracker to the end of the url we submit
to the pay per click search engine. For example,
if the visitors go to http://www.anycompany.com/
when your site is found, we change the link slightly
to http://www.anycompany.com/?source=pay-per-click-search-engine
where pay-per-click-search-engine is the actual
name of the pay per click search engine we’re
using. Both links will display the same page,
but when you're reviewing your web site log files,
the second link will tell you where your traffic
is coming from.
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