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How it is impossible to loose at PPC advertising

Saturday, November 14, 2009

With so many different locations to advertise including Google Adwords, Facebook, Yahoo Search engine marketing, Bing and all 3rd party PPC companies it is impossible to not succeed.

The trick to PPC advertising is knowing which keyword ads are making money and which keyword ads are loosing money. With that information simply decrease the CPC (cost per click) for all keywords loosing money and possibly increase the CPC for any keyword that is making money for a higher potential. However, tracking all keywords across several different search engines along with any other online advertising
such as banner ads, email campaigns, pup-ups, video ads, map ads, mobile ads, wallpaper ads and other methods make the task seemingly impossible.

We will start with how to succeed with quality search engines (Google, Yahoo and recently Bing). High quality search engines by nature will produce a higher conversion rate because the visitor is actually looking for your website! Now to the number one error that causes money loss from advertising on Google, Yahoo or Bing is simply bidding more than it is worth. A simple example is selling an anti fraud book. Lets say that for every purchase of your anti fraud book you receive a profit of $5. Your website will also sell 2 anti fraud books for every 100 visitors that enter your website this means that your website has a 2% conversion rate. Just to note a good conversion rate is anywhere between 1-2% and in some cases it is possible to get as high as 3%. Now lets say you are advertising on Google Adwords and you decide to spend $0.50/click for the keyword fraud. You receive 100 visitors in 1 day and 2 sales as expected. You have spent $50 on advertising and have gained $10 in other words you have lost $40 through your PPC ad. However, here is the trick to achieve success. After knowing the conversion rate for the keyword fraud is 2% the break-even-point on this keyword is $0.10/click, in other words any bids under $0.10 should create a profit for this keyword. This is a very simple example on how to adjust your keywords to ensure that you are making money and not loosing money.

It is important to state that it is very important to try to advertise on every search engine possible. Advertising on any 3rd party PPC search engine if done right will produce a positive a positive return. Although a 3rd tier search engine will never produce conversion rates that are relative to Google or Yahoo they will have a very low CPC (cost per click). In my personal experience I have found that 3rd party PPC search engines do produce a positive ROI if done correctly. In fact some keywords would produce a much higher ROI than Google or Yahoo. A word a warning however is click fraud, because click fraud rates are relatively high when it comes to advertising on a 3rd tier search engine, however if one is using a tool to track click fraud there is nothing to fear.

Last of all banner ads, email campaigns, pup-ups and other forms of advertising are quickly becoming un-popular because they simply do not produce the quality leads that a search engine will. However, there are some instances where you can succeed in other types of advertising and the bottom line is to try them out, track the ROI and determine if you are receiving a good bang for your buck or not.

Back to the initial statement "How it is impossible to loose at PPC advertising." The answer is simple, use a 3rd party ad tracker why? There are so many different websites to advertise on with hundreds of keywords each and with little to no time at all to personally analyze each keyword phrase and know what changes to make. However there is a solution, a 3rd party ad tracker will track ALL online advertising campaigns in one simple location. An ad tracker will show within moments which online campaigns are making money and which are loosing money. Individual keyword data is also provided to quickly know what changes to make. Correcting all keywords that are loosing money and turning them into keywords that are making money will allow you to succeed.

A few easy ways to improve keywords that are loosing money are:

  • lower the keyword bid
  • change the actual online ad
  • change the landing page to a more relevant landing page for that keyword specifically.
All three will improve create money making keywords. Revising all keywords should be done on average once a month to ensure success. On occasion a keyword will need to be eliminated because it simply does not produce a profit even if it does produce heavy traffic.

Conclusion: having a quality ad tracker that will also monitor click fraud to ensure all traffic is quality traffic is essential to having success in PPC advertising. Using all of the information provided by an ad tracker to improve online advertising is extremely important to succeed. With a quality ad tracker it is impossible to loose at PPC advertising!

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