The key to managing a successful Pay Per Click (PPC) campaign requires mathematics, effort and intuition. Pay Per Click advertising is, by its very nature, transactional. This means that the bidding strategy for your website must be formed by recognizing and adjusting to economic realities.
Bid positions must be set logically‚ you will need to define your objectives, understand the value of that objective, react to the behavior of your competitors and target the types of users you want to attract.
Defining Your Objective
When it comes to Pay Per Click advertising, it is essential to keep your objective in mind. Ask yourself what you desire from your online advertising and what you want your visitors to do once they click through your PPC advertisement. You may wish to increase the number of e-mail newsletter registrants, sell more products or generate account registrants on your website through PPC.
Defining Your Objective’s Value
Once you have defined your objective, identify its financial value. If you have set an objective of increasing the amount of e-mail newsletter registrants through PPC, determine the total number of e-mails you will need to send in order to generate a single sale.
For instance, if the average price of your products or services totals $100 and 50 e-mails generate a single sale, each e-mail you send will have a value of $2. This is the value of your objective.
Next, calculate your conversion rate, which is the sum of actions divided by the total website visitors within a pre-defined time period.
If your site attracts 20 visitors and one visitor becomes an e-mail newsletter registrant through your PPC campaign, this means that 5 percent of your visitors have chosen to opt-in.
To determine the maximum cost of a bid per website visitor to break even, multiply the objective value by the conversion rate.
Defining Your Users
With the advent of search engine advertisement segmentation, users have learned how to find advertisements of the greatest relevance. However, this means that your bid position will influence the types of users your website attracts.
The majority of PPC advertisers vie for the top bid positions. However, advertisements in these positions typically fail to attract goal-oriented buyers. Hence, you may find that an inexpensive, lower bid position will provide you with the greatest online advertising results.
Define Your Competition
Determine whether you have a competitor that sets an extortionate bid in order to monopolize the prime position or whether you have several competitors that are constantly trying to outdo each other. Keep an eye on your competition and analyze their behavior. If you come across a competitor with a large budget, prevent their bid by setting a bid of a little less than their upper bid limit. This will force them to have to pay an exorbitant price for either first or second position. However, watch out for other competitors who may attempt the same trick.
If you are up against several competitors, slip below their radar and attempt to occupy positions four to seven. This often delivers outstanding value as sponsors usually take up positions one to five.
Bringing Everything Together
Once you have defined your objectives and your users – and you know the ways to defeat your competitors – it is time to bring everything together and put it to the test. This will require great focus and effort. Concentrate your efforts on watching your competitors, analyzing bid position trends, calculating your performance metrics and testing out your new advertising copy to see whether the SEO techniques you implemented are proving effective. If you couple math with effort and focus, it can be easy to create a superb online advertising campaign.
Managing the ins and outs of PPC advertising can be an overwhelming hassle. Fortunately, at TheeDigital we specialize in results-driven Internet marketing, including PPC advertising, search engine optimization, social media marketing, and more. We can bring traffic to your site, and keep them there, with our world-class websites and videos.