An Intro to Web Site Advertising With PPC

Web site advertising with PPC (Pay-per-click) advertising is becoming increasingly popular.

Think about why.

If you want to learn more about widgets, you type "widgets" into a search engine. Companies specializing in widgets post their ads on that particular keyword in the search engine. The result: you see ads for widgets at the exact moment that you are searching for more information about widgets! Fantastic!

Another great thing about web site advertising with ppc advertising is the way you pay to advertise.

You know you are getting very targeted people to view your ad because you only post your ad on specific keywords of your choosing as mentioned above. But you do not pay every time your ad shows, instead, you pay only when someone clicks on your ad. How much you pay depends on how much you bid.

In some search engines, the placement of your ad depends only on how much you bid. The more you bid, the higher your ad. Google AdWords uses a different method. They do look at your bid price, but they may also look at: your click through rate (CTR), the relevance of your ad copy, the past performance of your ad, and the quality of your landing page.

You only bid on the keywords that you want your ad to post on and set the maximum amount you are willing to bid for each keyword. It is a "bid" because you are competing against other advertisers who are also bidding for placement on the same keyword.

In some search engines, you will pay your maximum bid price every time your ad is clicked on. In Google, you will only pay one penny more than the next highest bid up to your maximum bid price. This saves you some money! You will only pay as much as you need to to win that particular ad position.

In web site advertising with PPC, click through rate (CTR) is probably the most important contributor to your bid price. Search engines are constantly looking to post the most relevant content for each particular keyword entered into their search engine. CTR is an excellent way for them to do so. The more people that click on your ad, the more relevant your ad becomes for that keyword it was posted on. The more relevant your ad is, the lower your minimum bid price will be. Meaning, you will be able to bid less to achieve a higher ranking.

Generally speaking, the higher your ad position, the more clicks you will get. So you want to be number one right? Maybe not. The number one spot will likely get clicks from those who are just curious and not really ready to buy. This will cost you money.

You do, however, want to be on the first page of the search results, this usually means being in the top eight. You may also find that you do better being in the top four or five so that your ad can be seen by searchers without them having to scroll down. Trial and error will help you determine the best position for your ad.

This is just an intro into web site advertising with PPC. Please check out other articles on this site to learn more. Good luck!

Key Terms that you should know:

PPC

Pay per click. Refers to the system of advertising wherein you only pay when someone clicks on your ads.

CPC

Cost per click. This is the actual amount of money you will pay when someone clicks on your ad. Depends on your maximum bid amount, your ad's relevancy and your competitors.

Impressions

The number of times your ad has shown. This depends on the keywords you chose to show your ad on.

CTR

Click through rate. This is the number of clicks your ad gets divided by the number of impressions it has received. This is a way for search engines to determine relevancy. The higher the CTR, the more relevant the content.

ROI

Return on investment. Your profit divided by the expense of running the PPC campaign. You need this number to be greater than one to be successful in PPC.

Conversion Rate

The number purchases (or actions taken, i.e. sign ups, info requests, etc.) divided by the number of clicks your ad received.

Landing Page

The page you send folks to when they click on your ad.

"Google AdWords" is the trademark of Google, Inc. Newbie marketing is not associated or affiliated with Google, Inc. in any way.

Return from Web Site Advertising With PPC to PPC Advertising
Return from Web Site Advertising With PPC to Newbie Marketing Home