Pay Per Click Advertising

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Pay Per Click Advertising

 

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Pay Per Click Advertising - A Perception!

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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.

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