is it as popular as ever

[huskies1]

I am just wondering if you guys think that PPC advertising is as popular as ever? Do you think more industry leading PPC programs will enter the market?

[hwang]

Yeah, last time there were only Adsense. Today we have Widgetbucks, Adbrite and so much more. I believe there will always be new one come soon.

[oaklvr]

I read a lot about pay per click and through my research I found out that pay per click is expensive and your site really needs to be fully optimized before you put your money into pay per click.

Another thought with pay per click is this - with google ad words the payper click results are on the right hand side of the page and MOST people do not even look over there. I know, myself, I always forget that those search results are over there and I don't even look. Once in a great while I remember to look over there but I get bored with them real fast. Something about humans and the way we are wired. Most of us read from left to right. We are programmed to do this like robots.

Pay per click is good if you have a lot of money to bid high amounts on top keywords. Your ad will get shown but keep in mind only 2% of the people on the internet look over on the right hand side.

Connie

[hwang]

Although I never got into that, generally it's for those people selling high end product targeting customer who can afford the fees. Sometime we also not sure what the conversion rate like maybe 1 successful sales in 1000 clicks. We have to take that into consideration.

[Llamalord]

If you want to make money without not having to worry about people clicking and buying then your best bet is CPM, its simple to use but no where near as much money as you would normally get

[hwang]

Yeah, the cost is definitely lower and that would serve the ads to more people. I just wonder how much all this sums up to? I mean, what's the normal range of money usually the advertiser has to spent for a normal campaign?

[oaklvr]

You will want and need to know how much you can afford for pay per click. There is a formula for this and you should never go over this cost for your pay per click or you will be losing money. Sometimes we get over eager to get traffic that we spend too much to get there. Best to follow this general rule:

Let's say you have been on the net for a while and you have done some optimizing and you are getting 100 unique visitors a day. (remember -always optimize BEFORE starting pay per click)

So now - you are getting 100 visitors per day. We will say that one of those visitors bought an item from your site (this is very common - 100 unique visitors will lead to 1 sale) Your item sell for $100.00 and this item costs you $40.00 - so your gross profit is $60.00 - follow me so far?

Okay - next

So we can conclude that it took 100 visitors to make $60.00 profit -

If we were to average that out - 100 visitors = $60.00 then we would conclude that each visitor is worth .60 cents.

Calculation: $60.00/100 visitors = .60

Since we now know that each visitor is worth 60 cents we should never spend more than .59 cents per day on a pay per click campaign.

This is not something that I made up. It is pretty common knowledge - or maybe uncommon if you haven't studied this stuff - but for those of us that have studied this - this is what is taught.

Take it or leave it folks - Just posting it for your information.

Connie

[hwang]

Hmmm.... That does makes sense. Strange that you mentioned sales conversion rate of 1%. That's really quite high and efficient. I mean 1 sale in every 100 unique visitors.

[Llamalord]

Its the only way you can look at it, I have been looking into this for a long time (need something to replace Adsense) and its the only real way I could actually make any money from advertising, I cant sell links anymore due to google slapping me PR and no one wanting to deal with a lowly 0

[oaklvr]

I may misunderstand but I want to make something a bit more clear. The forumla I stated above was for pay per click advertising - like you pay .60 cents per day for putting keywords on - let's say - Google ad words. This was not a forumla for creating an adsense campaign which is a campaign where you let google put ads on your site for customers to click on and then google pays you for these clicks.

I may have the names - adsense/adwords mixed up a bit - I do not do any of them at the moment so I am not real familiar with them but you get my general idea.

Hope this helps avoid some confusion. I don't want to steer someone wrong.

Connie

[hwang]

Well, thanks for the guide really. At least now if I ever need to setup Adwords campaign I will know where to start from and most important, make the budget allocation for it.

[blueT]

I guess they can be a big player on the market, if they do it in the right way. Just imagine the posibility. It's all over the internet today.

[huskies1]

I guess in many instances PPC is still very popular. i know many smaller businesses that do not even try PPC as they feel they have better returns on other methods.