Pay per click advertising means paying the search engines
to show your advert when the searcher puts your chosen key words into the search
box. The adverts appear at the top or right hand side of the natural listings and
are labelled as 'sponsored'. The cost is based on the number of people who click on your advert to reach
your site, and the rate per click you have offered to pay the search engine.
Prices depend on competitive bids with the minimum
This is the most direct method of attracting visitors. By
careful selection of the key phrases on which you choose to advertise, you can
ensure that the resulting visitor is specifically interested in your product or
service. Clearly, however, that will include people who are just searching for
information about your product field rather than just those who are in 'buying
mode'. It will also include your competitors who will naturally be
interested in your strategy too.
The most important element in determining your budget, is
not so much the cost per click as the proportion of clicks that result
in the action you want. So for example, if your aim is to get job seekers to
register and you had agreed a cost per click rate of £0.50, the actual cost per
registration would be £5.00 if 10% of your visitors went on to register or only
£2.50 if 20% 'converted'.
The only way to determine your real cost per sale is to suck
it and see. Before you start you must set up your
website statistics service to ensure you
get the information you need. With the right information, you can gradually
refine your choice of key words, the adverts you use and the content of your
site to optimise the result. Without the information, you will never know what
you are missing!
Normally PPC advertising will be your most expensive promotion channel
per visitor. It should also be profitable nonetheless. So after
the test, it should probably become an ongoing part of your promotion and
also the bench mark against which to measure other channels. The cost
of search engine promotion, for example, and paid directory submissions can
be justified by their effect in bringing down the average costs of a lead or