PPC Management

The use of pay-per-click (ppc) search engines is one of the
single most effective forms of internet marketing. PPC management
programs enable a website owner to get their website listed in
the search engines with desirable ranking even when it seems
impossible to get a decent page rank in the organic search
engines. However, ppc advertising can be costly if sound ppc
management techniques are not used and part of the pay-per-click
advertising campaign.

Pay-per-click search engines truly drive loads of traffic to your
website and the use of them is cost-effective because you don’t
actually pay for advertisements. Rather, you bid on keywords and
keyword phrases that are relevant to the information, products or
services provided by your website. Whatever your bid is, that is
the amount that you pay for each click-through – the per-click
price for an internet browser that clicks on the ad and is
directed to your site.

Because you pay a flat fee for every click-through to your
website, ppc management is vital. Without good ppc management,
you can quickly begin to lose money. PPC management begins before
you ever bid on a keyword. Crafting a practical ppc management
strategy is essential. Most pay-per-click programs allow you to
specify a monthly, or sometimes even a daily spending budget.

Once your budget is reached, your ads quit appearing in the ppc
search results so you are not charged more than you have budgeted
for. Some service companies use unique ppc management strategies.
They leave their ads up until they get as much work as they can
handle, then they manually put their ppc advertising on hold
until the work is complete and they are ready to take on more
jobs. PPC management should employ one of these two strategies to
ensure that your ppc advertising doesn’t break your budget.

Another factor to consider for effective ppc management is the
actual value of a visitor to your website. The value of each
visitor will aid you in ppc management and budgeting as the bid
on a keyword should not exceed the value of a visit to your
website. If it does, you will be spending more on your
advertising than what it is worth which will result in a budget
deficit.

Knowing the value of each visitor to your website is critical for
ppc management. To calculate the value you first need to
determine your conversion rate by dividing your average number of
unique visitors per month by your average sales per month. You
will get a percentage which reflects your conversion rate. Now
take your average gross revenue, subtract your average expenses
and divide that number by your average number of sales to
determine your net profit per sale. Next, divide your net profit
per sale by your conversion rate. The resulting number is the
value of each visitor to your website. When bidding on keywords,
do not bid more than the value of each visitor.

Once the ppc campaign is set up, ongoing ppc management is
necessary. Continual ppc management activities involve reviewing
reports to see how effective particular keyword bids are in
driving traffic to the website, reviewing the value per visitor
periodically, and testing new keywords and keyword phrases to see
if others will be more effective in driving traffic to the
website.

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