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PPC Promotion - Does It Pay?

by Albert Weiss

Pay Per Click marketing is also known as PPC. With pay per click marketing, you pay the search engines each time a lead clicks the link in your ad and goes to your site.

The fact of the matter is, it can take between 6 and 12 months to overcome being purposely filtered out of the SERPS by Google. Even after that, you'll still have to wait until your site begins to rank high enough in the SERPS to start getting clicks and traffic to your site. So in the mean time you can get your ad listed at the top of the search engine pages by making use of pay per click

Like several other aspects of Internet advertising, keyword study is an important part of pay per click marketing. You have to know which keywords and keyword phrases the majority of people are most likely to use to search for what it is that you are offering.

When you start a pay per click marketing campaign, you are actually involving yourself in an auction. You and your competitors will bid on the keywords and keyword phrases that are used by most searchers, with the highest listings going to the people who bid the most. The more that a business is willing to pay for the clicks, the higher that site will be listed in the paid listings, which are most often found at the very top of the page and down the right side of the page.

pay per click marketing has become highly aggressive for many of the popular keywords, which can sell for anywhere from five cents per click to many, many dollars.

pay per click marketing is often filled with falsified clicks. Your competitors will click on your ads to drive up your pay per click marketing bill in order to try to get you to stop competing. There have also been some allegations and lawsuits regarding fraud that is perpetrated by the search engine companies themselves. And the Plaintiffs won at least one of these lawsuits that I read about.

I could write a lot about this area of advertising. But I think that your interests would be better served if I just "cut to the chase." Conversion rates vary widely by industry on the Internet. But the average conversion rate is similar to what is produced in the mail-order business, which is between one half of one percent, and two percent. In the real world, projecting a one percent conversion rate would be fairly safe, though there are thousands of unkonwn factors that can make the one percent number much too high.

What that means is that out of every one hundred clicks on your links, you might get one actual sale. So if the markup (Gross Profit) on your average sale is fifty dollars, and your clicks cost you fifty cents each, you can't afford pay per click marketing because one hundred clicks times .50 per click = fifty dollars and you just broke even.

Don't forget, "Gross Profit" doesn't include your overhead. It's only the difference between the selling price of your item and the cost of your item. So in the example given there was really a loss of money. You have got to know what it costs you to be in business, and that includes how much it costs to own your equipment, pay your rent, ISP, etc., plus the value of your time.

The bottom line is that most pay per click has been bid up too high by the larger businesses and can be difficult or impossible for a little guy to make money using PPC advertising.

Watch out for of the companies who will offer to manage your PPC advertising for a fee because they can't change the laws of math or physics. They will claim to have the expertise to help you, and they may. But they still can't change the laws of math or physics.

I've found that PPC advertising can work, but you have got to carefully do the math. Can you make a reasonable profit based on the above calculations if you pay the current bid price for the keywords and get only about a 1/10th of 1% or 2/10ths of 1% conversion rate (sales rate)? If you can, then PPC advertising may work for you.

I recommend that you stick with niche terms that haven't been bid up to high. Personally, in my industry I'm only willing to pay between fifteen cents and forty cents maximum per click, and my products sell for between forty and one hundred and fifty dollars.

PPC advertising? Do the math first, and then decide. But you should be willing to lose money while you learn how to make it work effectively!

Personally, I've found several SEO techniques that are much more effective than pay per click marketing. These other techniques have led me to promote my ecommerce site to the first page on Google, MSN, and Yahoo for the most popular keyword phrases in my industry. A reason that these other methods are much more productive is they cost little or no money. And most people attribute a lot more credibility to sites that rank high in the organic listings vs the paid listings.

By using these methods, in less than one year, I've been able to make my ecommerce website rank better than other ecommerce sites in my industry that have been at it for 10 years or more!

In the longer term, you will want to optimize your site and work on getting backlinks to raise your ranking in the organic listings. Many people have used reciprocal linking to promote their website.

However, one-way backlinks are much more effective at raising your standings in the organic listings. I have been very successful at getting one-way backlinks and I've documented the steps that were taken to drive tons of free traffic to my site to make it successful by using article spinning.

Albert Weiss, the author, has written up how he gets a lot of free traffic to his site by relying on article spinning, as well as other effective SEO techniques that you can employ yourself. Visit his Free SEO Information site to find out who the real SEO Gurus are.

Published May 14th, 2007

Filed in Advertising, Computer

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