Online Marketing Strategy Blog

How To Maximise Your Pay Per Click Campaigns

Michael Pulo - Monday, August 31, 2009

Pay Per Click offers quick results as part of your Online Marketing Strategy. Is it worth it?

Maximising the return of your Pay Per Click campaigns can be challenging for a number of reasons, including:

  • It is an auction environment - the more you pay the higher you rank. The trouble is that you and your competitors keep bidding against each other which slowly increases your average bid amount. Eventually it becomes too expensive and you are no longer on the first page of search results.
  • Google Analytics does not give you the exact keyword phrase the person typed in to find your ad. Instead, Google tells you the keyword that you bid on. This can mislead you into really understanding where your visitors come from.
  • The amount you bid immediately eats into your gross profit margin on your products and services. You may make the sale - but for what it cost to bring in the lead (which continues to rise) - you may not make a profit. Each sale begins to lose you money.

So how do you maximise your Pay Per Click campaigns? Follow these few rules to reduce expenses and maximise response rates:

  • Do a thorough keyword discovery on all keywords in your market, not just the high volume terms.
  • Implement these keywords into your full keyword and content strategy.
  • Set your campaigns to Exact Match, Geo targeted and off the content network.
  • Aim to rank for free for your terms so you can switch off your paid searches over time.
  • Monitor your conversion rates and change or turn off poor performers.
  • Ensure each ad is grouped into keywords that can have a common landing page. Point each ad to a specific landing page for that keyword group.
  • Set your budget per click using the formula : Profit divided by 100 divided by 2. This will give you the best chance at making a profit on leads that do come in.

Of course, Pay Per Click should only be part of an integrate online marketing strategy. Many research sources show that paid search can drive only 2.5% of actual first time visits to your website. Higher figures have been stated but these figures include return visitors once a person has seen your brand name several times in free search and other areas on the web.

Eye tracking research shows that only 2.5 to 5% of searches actually look at the Pay Per Click ads in Google.

Stay focused, have a good strategy in place and know your constraints and goals and you will be able to maximise the return on your Pay Per Click campaigns.

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