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
- Basic SEO Facts
- 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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SETTING UP THE PPC BUDGET
Mind you, the Average Conversion Rate – a percentage of people that actually purchase a product or service after clicking on an ad – on the Internet is in between 2% and 4%. If promoting a new business let us assume a 3% conversion rate for your website, i.e. 3 out of 100 customers that click on your PPC ad would purchase your antique car dynamo for $200. If there is a $90.00 profit out of those three customers and you have to spend $25.00 to acquire these hundred visitors, then a profit of $65 ($90 - $25).
It is obvious that PPC campaign can make or break the online marketing budget. Again, the relevancy of your ad is the most important factor that differentiates making from losing money. Every percentage increase in the conversion rate changes the calculation.
4% rate = CPC $0.25 x 100 = $25.00 to make $120.00; PPC cost is 20.8%
5% rate = CPC $0.25 x 100 = $25.00 to make $150.00; PPC cost is 16.66%
9% rate = CPC $0.25 x 100 = $25.00 to make $270.00; PPC cost is 9.25%
But keep in mind that things can go “south” very quickly:
1% rate = CPC $0.25 x 100 = $25.00 to make $ 30.00; PPC cost is 83.33%!
Every single detail in the ad must be totally relevant to the product or service you’re selling. Yes, RELEVANCY again – we cannot stress that enough, in PPC as in a great SEO work, RELEVANCY is the king. Poor relevancy in PPC costs money; good relevancy yields increased revenue. .
Keywords used in a PPC campaign must be as specific as possible. If you sell cars, and you not only sell “nice vintage cars”, but you have “1967 Corvette Palm Beach” so you target only online visitors in Palm Beach and vicinity and who are looking to purchase a 1967 Corvette. Do not forget to build an expanded keyword list for testing that could go to as many as 100+ keywords that you’d have to closely monitor and adjust its usage, depending of a performance any particular word produces in the ad campaign.
In designing a PPC ad campaign “think as customer thinks.” If you’re selling hydraulic pumps for a vintage Corvette who’s your client? A no-nonsense guy whose pump is down and who needs to have it repaired or replaced ASAP. Therefore you write your ad for such a guy and promise “Same Day Hydraulic Pumps Repair” in a body of your ad (your keywords are still “hydraulic pumps repair”). Offer great service and deliver great service.
Landing pages MUST also deliver the promise from the ad. If someone searches for the exact term he or she would seek to see that same term on the pages they came through a “click” or they might leave the website and never come back. Also, always Add the URL of the target website; if running a promotion, sale, free shipping, or anything that benefits a potential client, create a landing page for the specific ad and emphasize the special offer.