There is big hype today on Internet Marketing and the effectiveness of Pay Per Click advertising. I am going to go over some fundamentals of this marketing method, such as the benefits of having a low Pay Per Click bid, two ways to get the lowest bid, how to figure your (ROI), and finally my personal thoughts. I hope this article will shed some light and help you to get the returns you are looking for in your Internet Marketing career.
Two of the most common ways to get a lower Pay per Click bid are competition and the big R relevancy. First off when you are dealing with PPC you are bidding on a keyword that you think a potential buyer is going to type to get to your website. If you pick a keyword everybody is using then the competition is high and you will spend a lot more per click because everybody is using it. So you want to be able to dig down to find niches and long tailed keywords that there is little competition for and this will increase your ROI.
A lot of the Gurus do not know this and they just tank all of their money and waste it. By doing this you can be better than most of the Guru’s today. Then we have RELEVANCY! Google is starting to really crack down on sites that are just a bunch of stuff slapped to a web page with the hopes that it will sell by doing so they are raising Pay Per Click bids to an unrealistic amount in hopes the advertiser will fix it or just drop the campaign. This is more commonly referred to as a Google Slap. Relevancy is very simple if you are selling an e-book on making money on the Internet then why would you have an advertisement for the newest cell phone on your web page, get it relevancy.
So what are some of the benefits of having a low cost pay per click bid? One of the most obvious is to get you Return On Investment(ROI) to the highest level so you make good money. Be honest here, we got into this to make a living right? We are not doing this just to kill time right? Another benefit to having a low Pay Per Click bid is that you can get more exposure. What I mean by this is that everybody will not buy the first time that they go to your site so that sale is lost. You still paid for the click though right? The lower the cost of the click the more wasted clicks you are allowed in order to produce a good ROI. Obviously it is the goal to have everybody click though to your website and buy, but this is not reality in world today.
I keep talking about this thing called ROI or Return On Investment, why is this so important to your Pay Per Click bid? Well before we get into the why, we are going to get into the what of ROI? The definition for ROI is this: “Rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. So how do you figure this to your Pay Per Click bid? Well when it comes to a Pay Per Click bid then you have two things to consider, your pay and your cost. Lets say you are advertising an e-book that will pay you, for simple math, $10 per sale. On the other end lets say your Pay Per Click bid is $1. What does this mean? It means you are only allowed to have 9 clicks before this becomes what is a “break even” point to which you would stop running your ad and re-tweak it to try something more productive.
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