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Pay-per-click advertising
is
one of the most cost-effective methods of getting leads known
to Internet business owners. It gives you instant traffic,
and allows you to test your business model in real time.
At
the same time, pay-per-click advertising (or PPC) is not as simple
to use as the PPC companies will have you believe. If you jump into
the system without preparing for 'tracking' your results, doing deep
keyword research, establishing your ROI and most importantly,
testing your ads, you'll lose a lot of money really fast.
Before we start talking about the major PPC engines, here's
a brief overview of what you need to know.
| The Basics
Of Pay Per Click |
There are some terms that you should know if you want to
understand any discussion on PPC. Some of these are
self-explanatory, some you might have heard before. Either way, go
through this section and make sure to read those parts that you
don't know of.
In the PPC advertising model, you have three core
elements - keywords , ads
, and bids . These three elements are
combined with ' placement ' to create an
advertising model that displays 'relevant' ads on
search engines (in response to keyword searches), portals and
websites that opt to display such ads on their pages (the ads to be
shown are determined by a keyword analysis of the page).
For
a PPC campaign, you need to know the keywords that
you are targeting. For example, for a niche site that promotes a
time management product, I would create a list of keywords
that included keyword groups containing terms related to
time management, productivity, saving time, self improvement and
maybe even business soft skills. As I've told you before about
keyword research, you should have a big list so
that you capture most, if not all, of your target traffic.
The
next step is to write the ad copy for the ads that
will be displayed for your searches. The ad copy is extremely
important because along with your bid amount, this will determine
the 'conversion rate' (explained below) of your ads. Write concise,
compelling ad copy that highlights the benefits of your website /
product, and avoid fluff.
Once you've written your ads, it's time to bid
. The bidding mechanism differs from PPC engine to engine,
but the idea is the same - your bid amount is the maximum
cost (usually calculated in U.S. dollars) that you are
willing to pay for each keyword. It's important to know how much you
can afford in terms of bidding costs so that you avoid
going into bidding wars with your
competitors, and also so that you don't spend more than you make
through this campaign.
Cost-Per-Click
Cost-Per-Click ( CPC ) is the amount you pay
each time a potential customer 'clicks' on one of your ads that they
see on their search engine results or on websites. This is often
less than the maximum bid amount you set for each keyword.
Conversion Rate
Conversion Rate is the ratio of
clicks over impressions (the number of times your
ad is displayed on searches or page loads on websites). A typical
conversion rate is between 2 to 3 percent - that is, for every 100
impressions, you get 2-3 clicks on your ads.
Conversion Rate is closely tied in with the quality of your
ad copy , and also with Placement
, which I'll discuss next.
Placement
If
there is more than one person bidding for a keyword
(as is almost always the case), the placement of the ads
(which ad comes in on the first slot, which comes in on the
second, etc.) is determined by bid amounts of each
competitor. The higher your bid, the better your placement (Google
adds the conversion rate into their placement calculations, and I'll
tell you how later). Your conversion rate to a certain extent
depends on how high your ad is placed on the 'rankings' and this
leads advertisers to place high bids just to rank at the top. The
trouble with this approach is that you might enter into a
bidding war with your competitors and lose a lot of
money.
Tracking
Tracking refers to measuring which keywords are bringing you
the best leads or sales, and which keywords are
bringing you 'window shoppers' - people who are 'compulsive
clickers' and don't buy or sign up. Tracking your ad campaign will
help you further fine-tune your ads and improve your
ROI.
ROI
Your Return-on-Investment (ROI) is
determined by how much you are spending over how much you are
earning in net profits from your ad campaign. It's important to
establish a base ROI before your start your ad campaign -
assume a conversion rate of 1 percent - so that you don't over-spend
and are able to run this campaign within your budget.
The
Pay-Per-Click World
Currently, there are two major PPC engines, Google AdWords and Overture (now
known as Yahoo! Search Marketing ). While there are many
alternatives such as Espotting (now Miva), MetricsDirect and
Kanoodle, the top two PPC engines are a class apart when it comes to
delivering results.
However, one of the first pieces of advice you'll hear from
most people is that bigger PPC engines such as AdWords and Overture
are too 'expensive' to break into (with CPC for top
positions easily passing $3-$4 for many keywords, and reaching $10
for really competitive keywords).
In
reality, if you are just starting out, it's critical that you pick
one of the top two PPC engines. Why?
Traditionally marketers judge PPC engines on the following
criteria:
- Reach
- How large your potential target market is.
- Cost-per-click
- Quality of traffic - Do the leads fit your
customer profile? Are the willing to spend on your products?
- Quality of service - The tools and help
offered by the PPC engines.
Overture and AdWords beat their competition on all of these
metrics except CPC. However, the benefits of 'cheaper' clicks
are more than compensated for by the ease of use of
the big two, and more importantly, as any PPC expert will tell
you, the quality of traffic from Overture and
AdWords is far better than from other PPC engines.

Keyword
Elite: Generate 1000s Of Keywords In Seconds!
Overture was purchased by Yahoo!, and recently renamed to
Yahoo! Search Marketing. The name's not catchy, but
with Yahoo! Behind the 'second-largest' PPC engine on the Internet,
you can expect that the quality of traffic and services will improve
over the next year. Yahoo's acquisition of Overture is the single
biggest reason advertisers have started paying attention to Overture
again, although Google AdWords still commands leading respect.
Overture is a manually edited PPC engine.
When you write ads for your website, these ads (and the keywords you
specify) have to be approved by human editors before they can appear
in search results on Overture partner websites. While this ensures
that the quality of ads remains above a certain level, this is also
a hassle, as new ad campaigns can take several days to be approved,
and there is a distinct lag between the time you
plan to improve a section of your campaign (for testing) and the
time those changes actually go live.
Overture keyword bids are totally
transparent, meaning that any advertiser can see at
any time what other advertisers are paying for that particular
keyword. This is both useful and harmful - advertisers can
accurately target their 'ad placement' positions, but knowledge of
the top 2 or top 3 bid amounts can easily lead into a bidding war,
and competitors undercutting your ads by posting a bid that is $0.01
higher than yours.
Google AdWords is the leading PPC engine on the Internet,
although it's closely followed by Overture. Combined, the two PPC
networks are distributed on nearly every search engine or portal.
Google is totally automated - your ads go live within
minutes of being written. This is one of the two
significant advantages AdWords has over its competition - no need to
wait for 'approval' of your keywords and ads, which can take a few
days on other PPC engines.
Google AdWords, like Overture, does not charge you your
maximum bid amount, but just one cent more than the bid lower than
yours. On the other hand, AdWords bids are not transparent like
Overture - bidders have no idea what their
competition is bidding. This reduces the threat of bidding wars.
The
second advantage of AdWords is that it includes conversion
rate calculations in its ad-ranking algorithm. Simply put,
your ad may rank higher than your competitors' even if you are
bidding lower, just because you have a higher conversion rate.
AdWords rewards ads that are better written, and thus provides a
subtle barrier against ad spam.
PPC
advertising has become the ultimate marketing tool
for testing new ad campaigns, business models and landing
pages without spending too much money. Where else can you test a
sales page by sending it 100 leads for $5?
If
you are looking to promote your website / product
effectively but cannot wait for your search engine
rankings to show on Google or Yahoo, you should seriously consider
PPC advertising as an advertising tool that not only brings in
instant traffic (and sales), but is a hedge against ranking
fluctuations by ensuring that you stay on the top page for your
target keywords.
This is just a
general overview of Pay Per Click marketing/strategies. Stay tuned
for Part 2 coming soon, where I'll go into some much more advanced
techniques to really ramp up your traffic, all the while spending
less money!
Find
High Paying Adsense Keywords!

When
you think of SEO tools, the first thing that comes to mind is
paid-for, powerful programs like SEO Elite. The fact is, there are
many no-cost, small-scale and highly useful SEO tools available on
the Internet. Looking for keywords? Got it. Looking to check your
website's rankings for particular keywords? Got it. Link popularity?
Got it. Keyword density? Got that as well.
Free
Link Popularity Check
The
folks at Axandra have a useful tool that you can use to
check the link popularity of any number of websites
across several search engines. A must-have tool to keep a regular
check on your websites.
Find
out more about Free
Link Popularity Check.
NicheBot
If
you are looking to do keyword research, WordTracker
is the tool of choice for building huge keyword lists. But the
service comes with a price, and if you are looking for a free
alternative that still packs a decent punch, NicheBot is the tool
you should be using. It uses both WordTracker (the trial version)
and Overture to generate keyword lists, and pulls data from Google
to give you basic competitor information and search results'
numbers.
NicheBot also allows you to save and export
your selected keywords, making it the ideal choice for new
webmasters who don't want to invest in a professional keyword
research service like WordTracker.
Visit
NicheBot.
Digital
Point
With
an Alexa rank of 525 (as of June 2005), DP is second only to
WebmasterWorld in this article in terms of popularity. Digital Point
boasts a vast array of webmaster and SEO tools, including keyword
research tools, back links
tools and keyword position
tools. Registration, although free, is required to use
many of these tools. Definitely an excellent choice for business
owners who prefer a hands-on approach to their search engine
marketing campaigns.
Digital Point also has a vibrant forum
community, which has sprung up around the popularity of the
various tools and services that DP provides.
Visit
Digital Point Tools
and Digital Point
Forums.
SEO Chat
SEO
Chat is not only about quality, insightful arguments and a vibrant
forum community. They also have an amazing list of practical
webmaster tools that focus on every small aspect of your
SEO needs. Need to check the PageRank of every search term on
Google? Or need an easy way to generate Meta Tags? One of their best
tools is the Keyword Density tool that analyses a given web page and
returns the keyword density values for all one, two and three word
phrases.
SEO
Chat Tools also includes nifty keyword tools not usually found
elsewhere, such as a tool for generating spelling mistakes
(a significant number of searches on search engines contain
spelling errors) and a tool for ordering and sorting your keywords
list.
Visit
SEO Chat Tools.
Learn how
I quadrupled my Adsense earnings!
SEO Tools
When
you have a whole web site dedicated to providing
quality SEO tools for free, you know that you are getting a great
deal. SEO Tools betters many of the 'regular' SEO tools by mixing up
the staple tools such as keyword density and backlink analysis with
search engine spider simulations and similar page comparisons, as
well as that almost forgotten tool for checking your website in
different resolutions (you still do that, don't
you?).
Visit
SEO Tools.
There
are many other excellent SEO tools available for free on the
Internet:
- Good Keywords - A resource
for analyzing your competition for your primary
keywords so you know what they are doing, and what you need to do
on your own web site to beat them.
- Keyword Tumbler - An
unusual resource that gives you all possible combinations
for each key phrase in your keyword list. Good for a PPC
campaign.
- Webmaster
Toolkit - Another collection of SEO tools targeted towards the
practical and not-so-professional SEO webmaster.
As
you can see, there are many, many quality SEO resources, forums and
tools available on the Internet for free.
The
question is, what are you going to do about it?
If
you don't participate in forums, pick one of the 4 (5 if you include
Digital Point) from the list above and browse around. Find a topic
you want to participate in. Have a problem you want a peer's opinion
on? Register and make your first post. Just a
simple step towards interacting with the webmaster community will
take you a long way towards helping you build your business.
Anything in the SEO tools list that you think you can use? If
you are limited to Overture searches for your keywords, try using
NicheBot, and then take your results to Keyword Tumbler. How do you
manage your website's progress through the search engines? Take
Digital Point or the SEO Chat tools for a spin.
Whatever you do, take something away from
both of these lists, and I can guarantee that you will improve your
search engine rankings in a significant way.
Remember... YOU can use
any of these lessons on your own website. You can send the lessons
out to your email list.
You can even add your
affiliate link for SEO Elite, to the lessons and earn $74 for every
person you refer that purchases.
Below
you can sign up for the SEO Elite affiliate program where you can
earn $74 for every referral:
Click here to
sign up for free!
Keep
your eyes peeled for the next lesson, and keep those lesson
suggestions coming!


Brad Callen
Professional SEO
Purchase SEO Elite: SEO Software
Secret
keyword software that took me from $3.25/day to $236/day
