Pay Per Click Advertising - A Perception!

Pay
per click advertising is here to stay - the history and the future!
Pay per
click is an amazing concept. Its a game where click, keywords and
money is involved. Anybody can get a click to his site, but the game
is - how much per click he can afford.
Click-throughs and conversion rates play a vital role - if your conversion
rate is more you can pay more per click. Here are some tips to optimize
your pay per click campaign.
You can buy keywords at lesser known Pay Per Click search engines.
They cost up to 1000% cheaper per click.
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Search is gobbling up a far bigger piece of companies online advertising
budgets—accounting for 40 percent of the $2.37 billion spent
on online advertising in the second quarter of 2004, up from 29 percent
during the same quarter in 2003—according to a recent report
by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers.
Online search raises the bar on all other marketing. It’s the
ultimate form of permission marketing and the ultimate qualified customer.
As such, some senior marketers are starting to pay considerably more
attention to paid search as an integral part of their overall marketing
campaigns.
Paid-search initiatives, in which companies bid to sponsor the results
of specific search phrases or keywords and pay the search engine provider
for each click-through, have become the bulwark of search marketing.
Companies that began paid-search campaigns a year ago with only a
handful of keywords are now juggling tens of thousands of words and
phrases daily.
The movement began innocently enough in 1998, when a search engine
company called GoTo.com (now called Overture Services and since purchased
by Yahoo) figured out that advertisers might pay for prime placement
on its results page in front of a growing legion of search engine
users. The premise was simple: Boost awareness of your product or
service by making relevant information available to would-be buyers
at the very moment they’re working a search engine to book a
vacation or comparison shop for new computing gear.
The more a company bid for a keyword, the higher its placement in
the list of sponsored links. The advertiser paid the search engine
provider the cost of the keyword for each click-through that brought
a consumer to its website.
By 2000, most of the major search engines, including Google, offered
some form of paid listings. As bids increased, so did the cost of
the most popular terms. Today, the keyword lies at the nexus of a
multibillion-dollar industry in which anyone can play. Opening bids
on Google start at a nickel, while the most expensive search engine
keyword fetches as much as $50 per click. That is $500 for just 10
unique clicks.
How many keywords does your company currently bid for? In the breathless
quest for top ranking, however, many organizations have lost sight
of the ultimate goal: finding new customers. Web teams can get so
caught up in achieving a top-line ranking that they fail to evaluate
performance of individual keywords regularly to ensure the keywords
are getting the biggest bang for their bids. Many remain mired in
rating the success of campaigns on the most common (but far from telling)
indicator, click-throughs, instead of more robust metrics such as
pay-per-sale or conversion rates.
For some businesses, a lower ranking can actually translate into
a better strategy for qualifying would-be customers. "As people
go down the rank listings, it qualifies them as to how motivated they
are and how intensely they do research. "By the time they clicked
on the tenth rank, they’ve clicked on several listings, so they
have a higher propensity to be a buyer."
Some marketers are catching onto these trends and adjusting their
metrics accordingly. In many cases, they’re getting far better
ROI (return on investment) for each campaign, bidding, for example,
at cheaper engines.
Please note that pay per click demands tolerance and experimenting.
You can reach a certain good click-through rate and thus great ROI,
but suddenly one day you may find lots of clicks but no sales. You
need to be patient in those "bad" days.
Pay per click is here to stay.
If you
find things difficult following advice on optimization, you can opt
for our guaranteed
search engine optimization services.
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Here
are a few more articles on search engine promotion. I recommended
that you read them - they are really helpful:
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