Introduction to Pay Per Click Marketing

What is pay per click? Well, go to Google and type in a keyword or phrase you want to find. Then, at the top of search results, you will see a section for what is known as sponsored links and commercial ties. These sponsored links are to pay a certain cost per click to be listed in this special section at the top of the list. Each of these sites pay a certain fee to Google each time someone clicks through to their site. Each site that uses pay-per-click (PPC) is held in an offer on how much they are willing to spend per click for a keyword. The highest bidder is placed in the position of number one, the second highest bidder is placed in the position of number two, and so forth. In addition, each bidder specifies how much they are willing to spend per day. Once their daily budget is exhausted, the site is removed from the sponsored results before the start of the next 24 hours. Google is not the only search engine that has a service PPC. Overture also has a service, as well as Miva, and several others. Each service is linked to various search engines. If you use PPC with Google, your site will be listed on Google, AOL Search, and Ask.com. If you sign up for Overture, you will be listed on engines such as Yahoo, MSN, Netscape and many others. Miva is linked to about 6 different research engines.PPC marketing is expensive, especially if you're on a tender highly sought after keyword or phrase. Keywords related to auto insurance, price or mortgage, can cost anywhere between $ 1 - $ 20 per click or even more if you want to be ranked in the top position. If the keyword you want to advertise is not too popular, click the cost will be much less.It is possible to spend thousands of dollars for pay-per-click and make zero sales of the product or service you sell. Conversion rates for PPC marketing are typically 2% -5%, meaning that only 2% -5% of people who come to your website in fact what you sell. So you must take this into account when drawing up your marketing strategy. For example, if you have an online business where you sell DVD players and you spend $ 5 per click with a maximum budget of $ 500 per day for clicks received, it means you will receive 100 clicks per day ($ 500 / $ 5 = 100 clicks). If only one DVD player costs $ 200, and only 2% of people who visit your website to place an order, you will receive 2 orders per day (100 clicks with 2% conversion rate is equal to 2 sales). This means that you will make $ 400 a day, but your daily load is $ 500. So you have a net loss of $ 100 per day. So, PPC advertising can be very costly if it does not carefully.To try to generate a net profit with your PPC marketing efforts, you must take into account that most people using a search engine are just seeking information and are not buying products or services. So, be sure to bid on a keyword that will bring you customers who are looking to make a purchase and are not there to gather information. For example, if you sell vitamins on your site, and you bid on the keyword VITAMINS, you receive a lot of traffic of people who use your site simply to learn more about vitamins. Instead, you should bid on the expression BUY VITAMINS. In this way, you will receive only the traffic of people looking to buy vitamins, which will increase your sales, so you can get more for your buck.PPC marketing advertising is not necessarily appropriate for all activities online. You need a lot of cash to burn in order to compete with larger companies that spend hundreds of thousands of dollars per month for pay per click. If you operate a Web site for a small company, you need to diversify your Internet marketing efforts in optimizing your website and increase your link popularity so you can climb to the top of search engines without having to pay for every click you receive. Also, you should consider having an affiliate program so that other sites will promote your company for free as long as you pay them a commission for any referrals they produce. The best approach to Internet marketing is to use several different methods that when set up following an optimal cost situation of your business and attract a significant amount of traffic to your website.
Source: http://www.articlesbase.com/ppc-advertising-articles/introduction-to-pay-per-click-marketing-444417.html