Have you heard the saying, "planning is everything?" Perhaps there is some truth in that saying so let's discover how to successfully plan your pay-per-click campaign.
Let's keep this simple and create a list of required tasks to successfully plan your pay-per-click campaign. These are:
1. Determine your product's Unique Selling Proposition.
2. Define your pay-per-click campaign's goals and objectives.
3. Decide the starting and ending dates for the pay-per-click campaign.
4. Establish the click-through rate target for your pay-per-click ads.
5. Set the conversion rate target for your pay-per-click ads.
6. Define your budget for the pay-per-click campaign.
7. Establish your ROI or Return on Investment goal for the pay-per-click campaign.
8. Determine the value of each keyword phrase.
9. Plan how to measure your pay-per-click campaign results.
Task number one is determining your product or service's Unique Selling Proposition, or USP. What is a USP? The USP clearly answers the question, "Why should I do business with you instead of your competitors?" Your organization needs to stand out from the crowd! This could relate to the services or products provided, guarantees offered, delivery mechanisms used, complementary services provided, pricing or any attribute associated with your business.
Identify your organization's uniqueness since it is pointless promoting cheap prices if everyone else is promoting the same. If everyone were offering cheap prices you would be better off promoting higher prices for providing better quality and service as long as you are delivering better quality and service.
An articulate USP assists in defining the focus and selecting the keyword phrases for your pay-per-click campaign. For example, if your USP is focused on quality and service perhaps you would avoid a keyword phrase containing the word "cheap" but rather include words denoting quality.
Task number two is defining the campaign's goals and objectives. Typical examples might be: increase web site traffic X percent, acquire X number of new business leads, obtain X number of new customers or orders per day, achieve X sales revenue dollars per time period, etc. Whatever you set as your goals or objectives you must be certain they are quantifiable and measurable in order to determine the success of your pay-per click campaign.
Task number three is deciding the starting and ending date of the pay-per-click campaign. This is a major benefit to pay-per-click campaigns since you have the ability to turn a campaign on and off at your discretion. As an example, you could create a campaign promoting National Nurse's Week or something similar with discounted sale prices supported by advertising coop funds provided by the product's manufacturer.
Task number four is establishing the click-through rate target or goal for your pay-per-click ads. The click-through rate is the number of times the ad is clicked versus the total number of impressions. One impression is a one display of the ad. In general, click-through rates range from 1% to 5% of the number of impressions. The formula is:
Click-Through Rate % = Total Number of Ad Clicks / Total Number of Ad Impressions * 100
Task number five is setting the conversion rate target or goal for your pay-per-click ads. A conversion is a measure of searchers clicking on the ad and taking the next step or call to action such as a purchase, registration, subscription, etc. The conversion rate can be measured versus the total number of ad impressions or total ad click-throughs. It's your choice; but, most organizations measure it versus the ad click-throughs. Conversion rates range to all extremes but a good target might be from 5% to 20% of the number of ad click-throughs. A quick view of the formula is:
Conversion Rate % = Total Number of Conversion Actions / Total Number of Ad Impressions * 100
Or
Conversion Rate % = Total Number of Conversion Actions / Total Number of Ad Click-Throughs * 100
Task number six is defining your budget for the pay-per-click campaign. How much do you desire to budget or spend per time period or for the total cost of the pay-per-click campaign? Many of the pay-per-click search engines offer automated budgeting mechanisms that can be initiated to control the cost of your campaign. If you do nothing else in the planning process, set a campaign budget and stick to it!
Task number seven is establishing your ROI or Return on Investment goal. The ROI is based on the tangible benefits, bottom-line revenue increase or expense decrease, versus the cost to obtain the tangible benefits. In general, each organization defines ROI objectives for company investments and these should be applied to the pay-per-click campaign.
Task number eight, and perhaps the most important, is determining the value of each keyword phrase and, in turn each visitor. The simple formula works like this. Divide the average number of new customers each month by the average number of monthly web site visitors to get the percentage of visitors who actually become customers. If you multiply this percentage times your average profit margin on sales to new customers, you obtain a good estimate of how much a visitor is worth on the first visit.
In other words, let's assume you're selling an item with a $25 profit margin. If 10% of the web site visitors buy your product, then each visitor is worth $2.50 to you ($25.00 X 10% = $2.50). If you can bid $2.50 or less for each click-through of the keyword phrase, then you are profiting on each conversion or sale.
Another way to look at this is in terms of your click-through and conversion rates. Let's suppose we have a click-through rate of 5% and a conversion rate of 10% versus the ad click-throughs. We will use the same $25.00 profit margin.
1,000 impressions X 5% click-through = 50 potential customers
50 potential customers X 10% conversion = 5 actual customers
5 actual customers X $25.00 profit margin = $125.00 profit
$125.00 profit / 50 potential customers = $2.50 per click (maximum bid)
Have you noticed how important it is to know the value you of a keyword phrase or visitor? Without these guidelines, you are bidding in the dark and asking for trouble. It is imperative that you be able to estimate your maximum bid prices to be successful in your pay-per-click campaign!
Task number nine, the final task, is planning how you will measure your campaign results versus the goals, objectives and targets you established. You should review if you have the proper structure and tools on your web site to capture the information for the measurements.
For example, do you have access to your web logs? Do you have web analytic tools? What types of data do they capture and analyze? Do you have a web site page that will define a conversion? It might be the order confirmation page from your web site shopping cart or the e-mail subscription confirmation page.
Perhaps this seems like a substantial amount of work for planning your pay-per-click campaign. But, look at the results of good and poor projects in any personal or business environment. At the foundation of their success or failure was a well or poorly conceived plan. Take the extra steps. Make the additional effort. Your success will be rewarded with a cost effective, high ROI pay-per-click promotion campaign without breaking your bank account!
About the Author
Chet Childers is a successful Internet marketer utilizing the power and quick response of pay-per-click marketing to increase website visibility and profitability. Click http://www.ThePayPerClickMarketer.com and enroll in our e-course, "Discover Tips and Secrets for Pay-Per-Click Marketing Success," or visit http://www.ChetChilders.com.
Submitting your website to the Search Engines today may seem... Read More
I recently made a critical mistake in my progression towards... Read More
Click fraud is an unfortunate byproduct of the pay per... Read More
One of the hottest ways to sell affiliate products is... Read More
Hardly a day goes by without a forum posting in... Read More
Web marketing has taken on many different shapes during the... Read More
Have you heard the saying, "planning is everything?" Perhaps there... Read More
These are simply advertisements related, in theory and often practice,... Read More
Google Adsense is a hot topic in the Internet Marketing... Read More
Despite being online using email since 1995, at the start... Read More
The beauty of Google Adwords set up is its simplicity.... Read More
As an AdSense sponsoring web site, your goal is to... Read More
What are Website Conversion Strategies?Website conversion strategies are marketing and... Read More
The web has evolved into a complex "organism" which, to... Read More
We've received many emails from customers over the past several... Read More
Examining the failures of the web content design of many... Read More
PTRE stands for Paid To Read Email programs. Online companies... Read More
As anyone who uses Pay Per Click (PPC) advertising in... Read More
Google developed a prime product, Adsense. Marketing your website through... Read More
What are pay per click engines?Pay per click engines as... Read More
Dinner With Mark JoynerAbout 3 Years ago in Los Angeles... Read More
An analysis of web's most popular 20,000 keywords by TopPayingKeywords.com,... Read More
In private consultations with some Search Engine Optimizers I am... Read More
Incorporating high paying keywords into your site is critical to... Read More
Earning more revenue from your website is the goal of... Read More
Never mind the irritating, but effective, pop-up window. There is... Read More
ClickBank allows its merchants to sell many different types of... Read More
If you're an active Adsense publisher, I'm sure you have... Read More
Hi, my name is Darryl Power and I have been... Read More
When doing Pay Per Click Advertising you'll often see "Bid... Read More
That's right! Many webmasters are getting suckered into joining adsense... Read More
Not getting the satisfaction you want from your AdWords account?... Read More
I've been working with Google's Adsense program for a while... Read More
What I find is a lot of marketers do have... Read More
Pay per click search engine advertising is one of the... Read More
One of the best kept secrets in today's affiliate marketing... Read More
Pay Per Click advertising has been around a few years... Read More
Setting up a pay-per-click campaign is simple, right? Practically all... Read More
Clickbank has been around for years and has earned an... Read More
They are calling him the million dollar man. Jason Calacanis... Read More
Starting an ultimately effective pay-per-click campaign is difficult. Although the... Read More
It may seem to be a very expensive way of... Read More
Ready for more tips on how to make your AdWords... Read More
When running ads on the AdWords network, one of the... Read More
If you're a webmaster, you've probably heard about Google's Adsense.... Read More
Why do some companies bid on keywords for products they... Read More
AdSense is one of the best ways to monetize your... Read More
So, you've tried all the marketing techniques you have read... Read More
"Todd" was keen to compete in one of the most... Read More
In the mid 1990's websites used to earn income by... Read More
There is no doubting the success of Google's Adsense program.... Read More
First, go to google and type "dan kennedy" into the... Read More
Over the years I have had many accounts with Adwords,... Read More
One of the biggest threats to the continued growth of... Read More
Let's face it... Google Adwords is not the only source... Read More
Dear friends,Google, the most populated search engine on the Internet,... Read More
It is really frustrating, is it not, to log into... Read More
Choosing the right price for your digital products is one... Read More
Did someone tell you you can make money easily with... Read More
Well I have several sites, some of them I apply... Read More
Then most difficult aspect of marketing a new product or... Read More
One of the absolute best online marketing processes available to... Read More
There are good reasons why many webmasters and website owners... Read More
Who Else Wants To Maximize Their Google Adwords... Read More
Success with Google Adwords isn't quite as easy as some... Read More
If you haven't yet got a Google AdSense account for... Read More
Pay-Per-Click Advertising |