Useful Tips for Do-It-Yourself Pay Per Click Management

Effective pay per click management is essential to internet
marketing. Pay per click (ppc) advertising is possibly the
easiest and most effective way to market your business online.
Getting your website listed in the search engines is vital due to
the fact that the majority of website traffic (statistics say
over 80%) comes from the search engines. In regard to costs, of
course it is better to get a natural listing in the search
engines via search engine optimization, because in effect it is
free rather than paid advertising. However, there is a lot of
competition on the internet and you can't always get a desirable
search engine ranking without using pay-per-click advertising.

Effective pay per click management begins with devising a strong
pay-per-click strategy that will result in driving qualified
traffic to your website. Qualified traffic, or targeted traffic,
is traffic from your target audience - those who are specifically
searching for what you have to offer. These are the website
visitors that will be ready, willing and able to buy your
products or services. To develop a powerful pay-per-click
strategy and pay per click management plan, you absolutely must
conduct market research.

Even with the greatest pay per click management in the world, a
pay-per-click advertising campaign will not be effectual if it is
not devised using sound research. Research should consist of
identifying your target market (preferably a niche market),
identifying keywords that your target market uses to search for
what you are offering, and analyzing the keywords and alternative
keywords that will appeal to your target market. During your
keyword analysis, you will want to find out how popular keywords
are and what the average bids are for certain keywords you are
considering for budgeting purposes since defining a budget is a
necessary part of pay per click management.

Setting your budget for the purpose of pay per click management
that protects you against going broke because of a poorly managed
pay-per-click campaign is much easier to do if you website is
already operating and you have numbers to use already. If you
don't have this information, you will have to make projections
(educated guesses). If you do have historical data to use, you
will need to know your average number of sales per month, your
average monthly gross revenue, your average monthly expenses, and
your average number of unique visitors per month. These figures
will be used to calculate the value of each visitor to your

Calculations begin with determining your conversion rate which is
important to pay per click management. The conversion rate is the
percent of visitors that actually buy. It is figured by dividing
your average unique visitors per month by your average number of
sales per month.

The next calculation that is important to pay per click
management is the determination of your net profit per sale. This
figure is your average gross revenue minus your average expenses
divided by your average number of sales. Finally, you can
determine what the value of each website visitor is. To do this
you divide your net profit per sale by your conversion rate. The
value of each website visitor is the maximum you should pay-per-
click which is key to effective pay per click management. If you
pay more than that, you'll lose money. It's really that simple.

Once you know the value of each website visitor, you can easily
look through the keyword research you have conducted and
determine which keywords are best for you to bid on. When you set
up your pay-per-click advertising campaign, you can also set your
budget to ensure that you do not receive more clicks than what
you can pay for. Once the campaign is in motion, ongoing pay per
click management is necessary. Reviewing reports to determine
which keywords are generating conversions and adjusting your pay-
per-click strategy accordingly is vital for effective pay per
click management.

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