Calculating the profitability of a PPC campaing is done by carefully calculating the CPC bid, and making adjustments to feature the most successful ads in the most lucrative online markets. The bid amount is also a factor that determines the position of an ad on SERP at Google. Raising your CPC bid generally improves your ad's position; and lowering the bid can decrease the ad's position.
SEO University Topics:
- Pay-Per-Click, TWO
- PPC Budgeting
- How to Write Great PPC Ad?
- URL - Your Domain Name
- Title Tag - Your Message
- Description Tag
- Copy / Text of Your Pages
- Robots Tag
- Google KEI
- Header Tag
Please, come back often - this is an ongoing process; we are constantly updating our pages.
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HOW DOES THE PPC WORKS?
Before we move further it is
important to note, however, that ads are not ranked solely by their bid amounts; relevancy and click-though ratio of the ad are sometimes more important that the bid’s amount.
Keyword-targeted ads are ranked on search pages based on a combination of the matched keyword's CPC bid and Quality Score. Quality Score is determined by the keyword's click-through rate (CTR) on Google, relevance of ad text, historical keyword performance, landing page, and other relevancy factors. Lessons learned in “organic” SEO which passively drives traffic will help to make a Pay-Per-Click campaign more efficient.
Having relevant keywords and ad text, a high CPC bid, and a strong CTR will result in a higher position for an online ad. Because this ranking system rewards well-targeted, relevant ads, an ad cannot be locked out of the top position (as it would be in a ranking system based solely on price).
Obviously the tricky part is setting the budget for your PPC campaign. In the previous screen shot the daily budget for a fictitious antique cars dynamos ad campaign is set at $100.00 a day and the Maximum CPC bid at $2.50. This is how much the PPC account is charged after a user searches for your keyword phrase, e.g. “antique car dynamos” and clicks on a Google’s search results screen. Never set the budget arbitrarily—continue to make adjustments and the program will become increasingly more efficient—regardless of budget size. part of PPC study.
In order to successfully establish an advertising budget some forethought should go into the amount that can be spent on attracting visitors to your website. How much is it worth to pay for each click? How much profit is in a sale? Obviously, the larger the absolute profit margin, the larger the budget can be. This is then the Maximum Cost-Per-Click (CPC) bid.
But how to set-up the budget for a successful PPC campaign? Read Pay-Per-Click Budgeting!