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What is Pay Per Click

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What Is Pay Per Click Advertising?

Pay Per Click advertising is a form of direct marketing which allows businesses to place ads that are targeted to the audience you decide. You are only charged for the advertising when your ads are clicked.

The real time auction style pricing reflects the actual demand and market for an ad. What this means is that instead of advertising and keeping your fingers crossed that the right person will see and respond to it, Pay Per Click advertising allows very specific highly targeted ads to be shown to people who want and need that product or service.

Why Is Pay Per Click so important to your Business?

It combines three enormously powerful concepts:

  1. You only advertise to people who are looking for what you have right now
  2. You only pay when they respond – when they click through to your site
  3. Pricing is determined by an ongoing, real-time auction based on true market values.

If you use Google Adwords to run your Pay Per Click campaign, you can leverage the massive presence of Google by advertising to users on Google’s search results page. The beauty of an AdWords campaign is that once you’ve optimized it you just need to keep an eye on it every day and let it run..

The best thing about AdWords is that it gives you an instant market to test for any new idea. If you want to know, for instance, if your new business idea has potential but don’t want to risk investing a great deal of time or money, you can

What are the benefits of Pay Per Click to your business?

A recent study by Marketing Sherpa highlighted the following major benefits to any business from Pay Per Click (PPC) campaigns:

  • Generation of targeted leads
  • Increased online sales
  • Increase in website traffic; and
  • Increase in company awareness

Another major advantage of implementing a Pay Per Click campaign is that you can get started straight away, is quick to implement and can drive traffic within hours. No major changes are required to a current website design and can be implemented without any technical knowledge.

But don’t let the simplicity of this fool you as often lack of understanding on how to set-up pay per click advertising, business owners end up losing a lot of money.

How to get started with Pay Per Click Advertising?

The main goal of a Pay Per Click Campaign is to drive traffic of buyers to your website and/or offer page, but ideally you want more out of Pay Per Click results than just visits whether you use Google, Yahoo, Bing or any other search engine. The most important element of any Pay Per Click strategy is that the traffic should always achieve some conversion goal that you’ve set for your web site.

Before you begin, try an answer the following questions:

Who is looking for your product or service?

You need to begin by researching how many times people are searching for the product or service you are selling.

For this, Google Adwords Tool is an excellent and free tool. It will provide different keyword combinations and how many searches are made each day. This is very valuable information because it shows exactly how many times your niche words are searched for and what similar words are searched for. If you discover later that a keyword costs too much to bid on in AdWords, having alternate keywords to use will help you to lower your costs and yet still attract clicks and traffic.

What is the competition for your product or service?

After finding the keyword combinations for a particular niche and checking that they do get large numbers of searches on a regular basis, you must now find out how much competition there will be for the ad space you want.

To find out how much advertising competition you face, use the Google Adwords Tool.

The results will show you how many competitors you will need to bid against. Don’t be put off if there are large numbers of ads placed for a particular keyword. It just means that many other people have tested that keyword and found it to be successful. If you can get your ad placed among the top of those, or if you can target a sub-niche, you can be very successful.

More bidders means the price of the clicks will be higher. The more bidders you face, the more time and money it will take you to be successful.

Should you outbid?

It’s difficult to decide whether you should try to outbid your competition. If the bids are competitively low, there’s no reason why you would not be able to rise in the search ranks. However, if the bids are all above your budget, you might be wasting your time to compete.

Choose your budget

You decide on a daily budget. It’s important because you must be prepared to adjust before your click-through rates are high enough to justify what you are spending. You need to be able to decide how much money you have to spend on your advertising campaign to get sales.

Convert clicks into sales

To maximise your clicks, you need to have a desirable product, to sell your product and target those who want to buy your product. The method you use to sell your product or service is as important as the product itself. If you don’t tell your customer why they need your product, you’ll have wasted all of your efforts.

You must be able to target your products to the people who want to buy them. Being specific is key – it will ensure your conversion rates are higher.

Pay Per Click advertising is not just limited to major search engines such as Google, Bing or Yahoo but expands beyond to popular social media sites such as Facebook, Linkedin, Scribd.

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