Friday, April 01, 2005

Buying higher rankings in Search Engines through PPC affiliate program

What is PPC advertising?

Pay per click is a type of affiliate program of internet marketing used as a tool/strategy through which the websites can enhance their chances of getting highest ranking coverage on the internet. Like in T.V., advertisers bid for the prime times and prime channels where they would want their advertisements to appear, similarly in PPC advertising; the website owners bid for their advertisement to appear in the top most websites on the web. Though it is not guaranteed that every click by a visitor will turn into more sales for the advertiser, but it can help increase the sales of the advertiser by bringing more targeted visitors to the site.

In this advertising, the advertiser is the website owner who agrees to pay a rate (decided by him) on every click made by a visitor on the advertiser’s website through the search site. The advertiser who makes the highest bid on a particular keyword or phrase, for which he/she wants visitors to search for his/her site, is ranked the highest by the search engines like Google or Yahoo or any search engine that the advertisers decides to hire for it’s services. The best part about PPC is that the advertiser sets his own budget, and gives his own keywords for which he/she wants people to search. He is the decision maker for the price he wants to pay per click.

Plan of action for an effective PPC program

1.
Well targeted traffic

What is the USP of your service or product? Are you giving the visitors what they are looking for? It is an effective and profitable proposition as the advertiser pays only for the clicks that are made by the visitors. Basically, only a targeted audience who is interested in a particular website’s services and products would click on the website, thus putting an end to the unwanted traffic of visitors to the website. So it is important to plan the whole PPC campaign in such a way that only targeted visitors come to your site.

2. Study the bids carefully

Whether PPC advertising is useful for you or not depends upon the visitor/sales conversion rates and the price of your products/services. And for this, it is important to keep a tab on your bids. They have to be monitored regularly. The idea is not to pay too much on the bids and at the same time getting a positive return on your investment.

3. Writing a very attractive ad copy: saving CPC and increasing CTR

You must act like a smart businessman and try to save your cost per click (CPC) by maximizing your click through rate (CTR).

Whenever you pay on every click made by visitors, it is called your CPC. The percentage of people who click on your ad as compared to those who only visit your ad (called an impression that is not charged) is called your CTR. For example, 100 people visit your ad, and only 3 people click on your ad, so your CTR would be 3%. The CPC is decided according to how much you are ready to pay per click. The minimum that you have to pay is $ 0.05 per click. But there may be higher bidders than you in the market. So the bids you make have to be carefully studied and decided.

The calculation of your ad’s position as compared to other competitors is very simple. Google does it by using this formula:

Your CPC * your ad’s CTR = your ad’s position index (PI)

Let’s see the execution of this formula. For example your company Segnant specializing in creating websites, has two more companies in competition with you, say, by the names Createsite and Dreamsite.

Segnant 0.09 CPC X 3% CTR=0.27 PI
Createsite 0.08 CPC X 5% CTR=0.40 PI
Dreamsite 0.10 CPC X 2.7% CTR=0.27 PI

Your ad’s numeric position as compared to your competitors is 0.27, whereas Createsites’ position is highest even though it is paying lesser CPC than you and Dreamsite. The reason is that their CTR is higher than yours or Dreamsites’ CTR.

So this is the best part about Google’s Adwords search engine that even on a lower bid, your site will get a good ranking provided your CTR is high. So, it is important to create a very interesting, compelling and attractive advertisement.


4.
The right key words

You must be sure of the keywords that you bid for in the search engines. Your selected keywords should complement the services and products offered by the websites. If the keyword choice is not correct, you will not be able to draw the targeted visitors to your site and worse yet the good search engines like Google may not accept them even if you’re ready to pay a high amount for them.

5. Know your budget

It is essential to know how much you are ready to invest in PPC campaign. Always invest in relation to a good return on investment. If you are not getting good returns on your investment in the campaign, this means that you need to either stop the campaign or restudy your plan and implement again. Calculate your returns with the help of this formula:

Profit per sale / clicks per sale = maximum cost per click

PPC can be an effective strategy to attract more people to your site, if you know how to use it in the right way.

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