Pay Per Click Campaign Management: Or How Not To Lose Your Shirt

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Pay-per-click advertising services such as Google Adwords and Yahoo Search Marketing are very popular paid online advertising vehicles. Why? Because they get results. It doesn’t matter if you’re using Google or Yahoo, the idea behind them is simple: depending on what the user is searching for, i.e. what keywords he or she types into the search box, a number of search results will appear, called organic listings,  and across the top and along the side of the organic listings will be text advertisements for products and services related to that search.

Let’s say our user is interested in surfing in Hawaii. Well, the ads displayed will have something to with surfing. Maybe there will be an ad about the best surfboard every boardhead must have, or the best wax to use on a surfboard, or a surf magazine subscription. You get the idea. Odds are that this user will click on an ad if it is highly related to what he or she is searching for, and if he or she is ready to buy, they’ll purchase the thing that’s at the other end of that link.

The downside to pay-per-click advertising is that it can get very expensive, especially if your niche is very competitive. In order to get to the top paid spot in Google, for example, you might have to pay as much as $10 per click for the keyword or keyword phrase you are targeting. In addition to this, there is no guarantee that that $10 click you just paid for will result in a sale. That said, pay-per-click is effective enough that the riskiness of it is worth it, provided you know the risk and can minimize for it effectively.

The best way to stack the cards in your favor is to bid on keywords and keyword phrases that are relatively cheap yet still targetted at your intended audience. It is actually easier to do this than you think because the cheaper keyphrases tend to be more specific and therefore searched less frequently.

I know you’re thinking you want to catch the most web surfers out there that you can, but actually, you don’t. You want to catch people when they are in the last phase of the buying cycle, that is when they’ve done their research and they’re ready to buy. This means they’ve narrowed down their search for something very specific.What this means is that you may end up with less clicks, on average, but your return on investment will be higher. In other words, every click has a higher possibility of becoming a sale.

To recap, pay-per-click advertising is a great way to get traffic to your website very quickly, however it is risky and can get expensive. To minimize your risk, target specific keyword phrases closely related to your product or service that don’t cost as much and tend to attract people who are ready to buy now.

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