The most effective method to develop a successful PPC campaign is by considering your profit margin. Let’s say your average order is $100.00 with a profit margin of 20 percent. That leaves $20.00 profit for each order. With a one percent conversion rate you can expect one sale for 100 clicks. If you have $20 margin to play with for 100 visitors, your maximum CPC is twenty cents.
Revenue is another consideration for developing your PPC advertising. If your goal is to spend 10 percent of your revenue on PPC, your budget is $10.00 per every $100.00 revenue.
Writing Your Ad
Research the most effective keywords for every one of your ads. Avoid generic terms. Even though you are paying for each click, you are still competing with other advertisers. If you select the right keywords, you might get better results than a higher ranking ad with poorly selected keywords.
Study printed advertising materials as you write your PPC ads. Many techniques easily translate to online advertising. Pick up a magazine and study the wording within the ads. Experiment with some of the same words in your own ad. Embed keywords in your ad. Some of the search engines highlight the keywords in your ad that match the search query.
Use active verbs in your ad, especially in the beginning of your title. Some sample titles with good active verbs in the beginning are: “Avoid Late Payment,” “Reduce Your Monthly Bills,” or “Save Big Now.” Active verbs breath life into your PPC ads.
Don’t Bid For The #1 Position
The top position is the most expensive spot. By insisting to the in the top position, you are putting your business at disadvantage. By being the first, you guarantee that you are spending the most per click. Your competitors will know that you have to work with narrower margin because of your higher CPC.
Serious buyers don’t make the purchase on the first website. Online buyers visit multiple sites before they buy. There is no reason to be the first because most shoppers will click through at least the several top results. It is unlikely that a consumer will click on the top result and buys without looking further. By allowing searchers to find you in lower positions, you let them pre-qualify themselves. A lower positioned ad is safe from compulsive clickers, and it is more likely to attract serious buyers.
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