How Pay-per-click is used in Internet Marketing and what are the pros and cons of PPC.
One of the vastly used models of internet marketing is pay-per-click. In pay-per-click, advertisers pay publishers when their ads are clicked. Affiliate marketers, website owners and other businesses use PPC to direct relevant traffic to their websites. This method delivers huge traffic within short period of time. Higher the budget the higher the number of visitors directed to a website. However, once you stop paying the publisher your traffic dries up.
How PPC Works?
Search engines are biggest pay-per-click networks where advertisers bid on keywords related to their niche. The amount paid to search engines varies according to the competition for these keywords. Unlike search engines, content sites charge fixed amount. There are two type pay-per-click systems:
- Flat PPC
Flat rate system, the publishers, and advertisers decide on fixed amount, which will be paid per click. Most publishers today provide rate card depending on the advertising area of their websites. The contents, which attract more traffic, are more valuable for publishers and hence, they charge higher on such contents. However, if advertisers and publishers commit to high value contract the rates are lower. Review sites or comparison shopping sites provide rate cards as they categorize products or services that accommodate almost all visitors searching for all kind of niches.
- Bid-Based System
Advertisers sign contracts with bid based PPC networks, where they compete with other advertisers in an auction hosted by an advertising network. Bid occurs for an ad space located on website. Auction occurs in automated manner after the space becomes the part of SERP (search engine result page). Bid of keywords takes several factors in account such as geo-location, day and time of the search. The publisher also takes ad relevancy and quality of ad into consideration for choosing the winner. Ads found on SERP are generally of high value than on flat PPC networks. In this biding model, bid management tool plays key role. This system ensures bid stays under set parameters like maximum traffic etc. The working of it is related to the performance data In case of low-traffic ads, often scarcity of data makes this bid management tools completely useless.
For advertisers, it is the effectiveness of the PPC ad campaign helps them earn profit. Like every business model, there must be good return on investment. You could optimize pay-per-click campaigns using following tips:
- Place the best possible ad
Experience marketers spend lot of time designing pay-per-click campaigns. They look for factors like budget allocation, and keywords. In addition, to these factors you need to be creative to make user click on your ad. Use your marketing skills to create ad that connects audience and invite relevant users to your site
- Quote the price of your service or product in ad title
Ecommerce is all about selling products but as you are paying per click you need to make sure you get the best click through rate, so that you only get the interested customers for your site if visitors are fine with the rate and clicks through then they are potential customers who are ready to buy.
- Invite only few visitors
General sense would be to attract as much as traffic as you could but that way you end up spending more with less amount of profit or no profit at all like previous point, we require only those visitors who are interested in buying. Add few more filters with your ad.
Invite only interested visitors
- Use long tail keywords
Most effective method for getting organic and relevant traffic is by the use of long keywords that has 5-6 words. Select those kinds of keywords for your campaign. They will not drive you substantial traffic like primary keywords but it will drive interested candidates to your site
- Keep an eye on negative keywords
Some keywords may seem relevant to your niche but it could attract unnecessary traffic. For instance, if you are selling something you should not use keyword sell as it may attract people who want to sell similar products. This is like inviting your competitor and paying him to visit your site
- Create ad variants
You must never be satisfied with one ad rather you must seek better performing variant that require less spending and deliver better traffic. Best thing you could do is to keep an eye on how your ad is performing.
- Direct visitors to relevant content
Be faithful to your visitors. Direct them to a page, which will solve their problems. This way there is more chance of them buying your product. Keep in mind that they have taken an effort to click your ad on different website. Once they visit your site, make sure you are in position to make instant sell without further navigation.
- PPC campaigns could yield instant results.
- You will be paying only for the number of clicks made and not for impressions. Hence, you get the best return on investment (ROl).
- Once, you have successful campaign, you could scale it up and reap more profit.
- PPC traffic is known to perform much better than any other method.
- PPC traffic completely depends on how the search engine like google functions. Any change in search engine’s algorithm could make your campaign ineffective. However, you will not lose money but you will have to create another ad campaign that complies with search engine.
- It will function as long as you maintain the budget. As soon as your budget hits zero, traffic too hits zero.
Google AdWords is the biggest network that earns billions for advertisers covering more than 80 percent of the ads on internet. It uses bid based pay-per-click model. It delivers effective traffic and keeps updating new keywords and algorithm regularly. Other than Google AdWords, there is Media Net, which is created by Yahoo and Microsoft. It works fine but scaling up with it may not be easy in Google dominant market. You could contact individual content owner for flat rate PPC, it completely depends on your niche.
Pay-per-click is all about your marketing skills and ability to find the profitable niche. You could use any network and pay any amount, if your product does not sell, you will not make a penny. Find the best possible sellable product and test initially with test PPC campaign. Once your ad starts performing, start investing more to scale up your campaign.