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How to run an effective Pay Per Click Marketing Campaign?

In the year 2002, the advertising expenditure on pay per click (PPC) campaigns was $ 1.4 billion. By the year 2008, it will account for $ 7 billion, an increase of 500% in 6 years. Sure makes it a better place to invest than a bank, right?
And that's not all. Currently 1 billon and odd people use the Internet across the world and this number is rapidly multiplying, especially across populous Asia. All these factors make PPC advertising a critical factor, and unless there is effective PPC management, most of the billions you read about upstairs may be flushed down the drain.

Basics of PPC management

PPC campaign management primarily depends upon the nature of your business and on which search engine or website you choose to advertise. However, you should not jump into a pay per click campaign management program just because the whole of America is into it. Think, and think hard, and ask yourself the following questions:
Does your website show up within the first thirty or so results dur ing a natural search?
May websites are loaded with effective keywords and such websites show up during a natural search. If your website is one such website, then maybe you do not want to advertise just for the heck of it. Or, maybe your n atural website lands you on the fourth page and your PPC ad lands you on the fourth or the fifth page. In such a case, a PPC ad is useless.
Do you need to advertise on a search engine?
You may be manufacturing fluid couplings, and may be expanding. But that is no reason for you to advertise on Google or Yahoo using keywords such as "fluid" or "couplings", because the guys who visit Google and Yahoo use these keywords to look for some other kind of content. In the above case, a PPC ad on an industrial product finder website will do nicely. Place your PPC campaign where you will find buyers.
Do you need professional help?
Of course you do, because for all you know you might be sipping espresso and munching on a chocolate cookie when 5000 visitors dec ide to visit your website by clicking on your natty, catchy keywords on whom you bid $ 5 per click. That is a joke, but the point is: Unless you are a PPC company yourself, you need professional help to monitor the campaign. And, you need to choose a professional outfit to do the job - Individuals or amateur firms will not do.
4. What about your ROI?
Return on Investment (ROI) is very, very important. Good money should never run after bad money. PPC ads are a dangerous game - if you get too many hits and you have bid high on keywords, then you are going to spend money like hell. And if the cash spent does not translate into enough sales or at least breakeven profits, then you might as well ditch the campaign.

The role of PPC management professionals

Pay per Click account management professionals go a long way in helping optimize a PPC campaign. This is what they can do:
  • PPC professionals have in-depth marketing knowledge because they deal with a large variety of clients as well as search engines and diverse Internet markets. These guys also update themselves with the latest trends in the Internet markets and they can guide you well.
  • When you run a PPC campaign you need a professional to monitor it daily . Even if you hire an employee he may need expert supervision.
  • You will get better results if you have professional running the PPC campaign. If you hand over the campaign to your wife and her brother or any unprofessional, you are a goner.
  • Professionals will justify their costs by getting you a better ROI. They will most likely be able to generate higher sales and lower the costs.

Evaluating PPC campaigns

Assume your PPC campaign is on, and so, now what? Well, you have to monitor and evaluate the following:
Are the keywords effective?
If they are, you should be getting more visitors. If they are not then you should get your PPC management company to write better words.
Is your PPC ad appearing on an insignificant page?
If your PPC ad is coming up on insignificant (say after the fourth page or so) of a search engine, then you need to modify your keywords and the bid amount (this is called Bid Management).
Are visitors getting converted into custom ers?
PPC management companies place some kind of software tools on your website to figure out if a click-through visitor actually bought something from your website.
Are you a victim of a click-through fraud?
If there are too many click-through's - much more than you have ever expected, then something is fishy. Maybe, your competitor is getting your ad clicked so that you burn up your marketing budget. Click fraud needs to be monitored, both by you as well as by the publisher.
Finally, are you making any money?
Ultimately it is the money that counts.
If you are bidding $ 4 on a click and halfway through your campaign you have received say 5,000 clicks, then you have spent $ 20,000, plus the fees paid to the professional PPC management company. Suppose 1 0% of these customers have bought your product costing $ 50; then you have made a sale of $ 25,000. Further assuming your gross margin is as large as 50% then this translates to a profit of $ 12,500, which brings us back to the total ad expense, which is $ 20,000 you just lost $ 7,500, plus the fees! Therefore, it is prudent to do a breakeven analysis of your PPC campaign before you begin it.

A PPC campaign well begun is half the work done. If it is evaluated periodically and set right - if the need arises - then it is well done.

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