In order to understand how this really works, let us look at the methods adopted by pay-per-click search engines.
What do they do to attract traffic - well they sell the best available keywords for a certain amount through bidding.
Then the websites receive the traffic generated by the clicking on these particular keywords – and they pay for the traffic generated by each click.
So far, so good but is the website really profited by the high volume of traffic alone? When the traffic is generated, the website gets a lot of traffic from people who are genuinely interested in the services offered by the website; however, the website is actually profited only when conversion from the click to business is effected. This is called ‘click-though-rate’ and it indicates the actual cost of the ppc campaign per order received.
Your high traffic is great only when the conversion rate is also high – or else you will actually end up only paying your dues to the PPC search engine without real profit – or even with loss. When speaking in general this concept is really meaningless. So let us take the example of one financial aspect that we could use – let us say the website deals with investment, investing, stock exchanges, venture finance, venture capital, and so on.
When do you really get a profit? This is when you get the highest possible ratio from traffic to conversion. When does this really happen? When the traffic generated is as close as possible to what it is offered by the website. How do you achieve that? There are many ways to do this but one of the latest methods is what fxsignals.com offers you. This being a newly conceptualized search engine (specifically based on tracking and used financial based websites) it offers a geo-tracking system to its customers.
As a marketing strategy, this is absolutely invaluable since by geo-tracking the search engine itself can identify and filter the customers area-wise and hence give you the best concentration of the most convertible clicks. This is how you will be able to get the best conversion rates since fxsignals.com already filtered and directed for you only those clicks which best suit your area and pre-requisite markets.
Hence if your websites, as we were looking in the example, is based on investment, investing, stock exchanges, venture finance, venture capital – then you would actually get all the people that wanted to have anything to do with any of these services. But if you add up that you can offer these services best only in Canada or New York – and you have a search engine which will highlight only those customers and allow them to click only when they are from that area – then it definitely looks like you will have better conversion rates than a general clicking spree.
This type of services are invaluable when it comes to specific financial websites, since there is no other search engine in the market that actually brings total focus on only financial aspects. In this manner, websites that deal with data, investment trusts, exposures, financial theory & research, financial training, currencies, interest rates, credit, fixed income, corporate reports, finance, seminars, financial, books, risk management, futures, forwards, managed funds, insurance, project finance, corporate finance, loan syndication, trade finance, structured finance, factoring, commercial credit, custodial and settlement services, fund performance, emerging markets, managed futures, hedge funds, swaps, options, structured notes, traders, investment, investing, stock exchanges, venture finance, venture capital, back-office systems, banking technology, unit trusts, banking, lists, ratings, banks, conferences, derivatives, finance reports, magazines, stocks, equities, financial markets information, financial on-line information, all in all can be thus targeted for best possible results in pay-per-click marketing.
Here with fxsignals.com you are double filtering at ground zero – whereby you get one filter in place when the keywords will be selected only from financial arena, and two – when you will get the response only from those geographical areas from where you would want and can extend your services.
http://plrarticlecollecton.50webs.com/ Related Links: Computers Technology & Internet BusinessThe Money making of a Niche ::Free Data Entry Work :: Imtiaztips Weblog :: Free Webmaster Articles :: More iPod Articles :: Download Freeware Software :: Updated Contents about Google AdSense for NEWBIES.
Wednesday, September 15, 2010
Cost per click or pay per click is a common phrase among internet marketers.
What do you mean by Pay per click (PPC) Search engine marketing?
When you ask a Internet surfer about cost per click search engines they view it as a search engine where you search for information. But when you ask the same question to a person who runs paid inclusion in search engines it is an inexpensive way to drive targeted traffic to their website.
This is how Pay per click works, if any one wants to bid on keyword in search engines for their website they open an account with these search engines which needs some amount as deposit to start with. After creating the account with search engine the next step is to enter the URL of the website, a creative Title, and a description and bid on keywords. The keywords are identified and researched carefully before bidding. So every marketer chooses the right keyword to target.
So when a visitor searches for a certain keyword for example "shoes" the information you had given appears in the sponsored links of that search engines. Sometimes your website would be displayed above all the organic listing in the search. So in that way you website is found by the visitor who is intending to buy "shoes".
Major PPC search engines? : There are numerous search engines out there but the top ones are Google Adwords, Overture and Findwhat how has got a major share in the PPC search engine market.
Initial investment for starting a PPC Campaign - There is nothing like minimum investment expect some amount for activating your account you can start the campaign for which ever amount you want even with Dollar Five. And the price of your keyword can be decided by yourself. Also you can adjust the price of the keyword according to your requirements. If the keyword you have picked doesn't gets your enough satisfaction you can drop it and pick a new work which works for you.
The bottom-line is Bidding the right keyword for you PPC campaign is key for a successful pay per click search engine marketing.
More Articles:- Free Download PLR Articles in ZIP or RAR File format. http://plrarticlecollecton.50webs.com/ Related Links: Computers Technology & Internet BusinessThe Money making of a Niche ::Free Data Entry Work :: Imtiaztips Weblog :: Free Webmaster Articles :: More iPod Articles :: Download Freeware Software :: Updated Contents about Google AdSense for NEWBIES.
Thinking about the whole Pay-Per-Click model.
Pay-per-click (PPC) has been around for more a decade, and while Google has made some positive changes to it, it's showing its age. If you think of the Internet advertising process as a series of actions, it would go like this:
Impression -> Click -> Action
Back in the old days the metric was CPM (cost per thousand), and advertisers paid per impression (getting the ad on the screen). CPM favored the publisher over the advertiser, as the publisher's responsibility ended at the first part of the process. DoubleClick, an early ad serving company, came up with their DART system to match the right advertiser with the right screen in order to maximize the return on CPM.
PPC moved the metric forward in the process, measuring success (and payment) based not on how many times the ad was served, but how many times it was actually clicked. When most people think of PPC they think of Adsense, Google's contextual advertising engine. But PPC is employed in banner advertising, on big ad farms like Doubleclick and other companies, and in some affiliate programs, though the number seems to be waning.
The latest incarnation of search engine based PPC (thanks to Google), works like this: you select keywords that you think people will use to search for stuff related to what you sell. For example, if you sell pretzel dough you might want to advertise under pretzels or making pretzels or something along those lines. Selecting keywords is way beyond the scope of this article, but there are plenty of companies out there that make a living helping you pick keywords.
Anyway, you then bid on those keywords and your ad is shown on the page with the search results.
With Adsense Google moved the context from the search engine results page to your web site content. It reads your site and decides what keywords to use to display advertising on your site, just as it would with a Google search.
For affiliate programs it's a little different, but the concept is the same. You choose the ads (or pay someone a piece of the action to choose the ads for you), and they get displayed on your pages. Rather than selecting the keywords explicitly, you are selecting the ads based on what you (or your agent) thinks people who have chosen to read your content may have an interest in seeing.
When someone clicks on the ad, you get paid. It's that simple.
For Adsense, appearing first on the list makes all the difference. A study suggests that being the #1 choice increases your chance of being clicked by up to 40%, because a lot of people don't look past the first entry (I always check the first few). The difference in bids between the first position and second position could be staggering. For example, 1900 people searched Google for the word tax yesterday. The top spot in Adsense would have cost you $25.12. Positions 2 and 3 drop to $6.96, and 4 and 5 would have cost you $4.24.
My experience with Adsense tells me that in this case the first position would probably pay Google close to $10.
As the publisher, this is a home run. Every time the person clicks I get a $5 bill. God, what a country!
As the advertiser, $10 to get the person in the door seems like a lot of money to me. If I'm selling a high margin item (like maybe tax software or one of those quickie tax loans), it seems like it may be okay.
But I still have to get them to buy. Conversion rates (getting the person to take some action once they've clicked on the ad and gone to your site) vary wildly, but I always use 1.5 - 3% of those who click on an ad. That means that 97 - 98.5% of the people who click on the ad do not buy. Let's use 2% as an example. That means that for all the five dollar bills flying into the publisher's pocket, only about 2 people out of every hundred will buy anything. So for every $1000 I spend I get 20 sales. That means that every sale costs me $50. Your results will vary, of course, depending on how targeted your keywords are and your industry and offer. Get the conversion up to 5%, for example, and you will be down to $20 per sale, which is a little better. I am designing a what-if tool to help with this, and I'll post it when it's ready.
One of the reasons for low conversion is probably click fraud. If an unscrupulous person wants to make money in PPC, all he needs to do is find a bunch of people (or computers) to click on the ads on his website continually, and he'll reap the rewards.
Barron's believes that the smart money is getting out of PPC. They cite FTD as an example:
Flower giant FTD Group (FTD) recently complained about the high price of search advertising. "During the Christmas season, certain online search engine costs increased significantly over the prior year, and as such we made the decision not to pursue the resulting high-cost order volume," said Michael Soenen, chief executive officer.
First off, let me just say that as an advertising exec I pitched FTD, and they didn't strike me as the brightest bulbs in the chandelier. That being said, it's easy to see why FTD wants out. Being #1 or #2 in the keyword Flowers around Valentine's Day would have cost between $6.25 and $10.00. There were 100,000 searches on the days close to VD on that keyword, and 11,500 on Flowers Delivered, which would have cost between $5.03 and $6.72.
Some simple arithmetic shows me that FTD nets about $6.20 per transaction across its network. So the transaction is either a wash or a loss. FTD is the number 1 ad on Google for their keywords, so I guess they decided to eat that first transaction, counting on continuity to save them. According to Barron's this isn't going to work either:
One industry executive noted that the lifetime value of a customer acquired through Google for his/her business had approached zero. Oops. So much for that theory.
So the answer seems to be that the big guys are getting out. Using the flowers example, though, the top 5 ads are FTD, ProFlowers, Hallmark, 1-800-Flowers and Teleflora. So I guess it's going to happen over time. So where is the future? According to the inventor of pay-per-click himself, Bill Gross (formerly of GoTo.com), the future is in pay-per-action, which moves the metric down to the final part of the Internet advertising transaction, where we think it belongs. There's a terrific article on Seochat.com that has more information on this. Pay-per-action is simple both parties have a stake in the outcome of the click.
More Articles.: Quality Guidelines Of Google Adword / Read about Ads / Web 2.0 Ad Serving
[ The Money making of a Niche ::Free Data Entry Work :: Imtiaztips Weblog :: Free Webmaster Articles :: More iPod Articles :: Download Freeware Software :: Updated Contents about Google AdSense for NEWBIES. ::ImtiazTips Online Business ]
Impression -> Click -> Action
Back in the old days the metric was CPM (cost per thousand), and advertisers paid per impression (getting the ad on the screen). CPM favored the publisher over the advertiser, as the publisher's responsibility ended at the first part of the process. DoubleClick, an early ad serving company, came up with their DART system to match the right advertiser with the right screen in order to maximize the return on CPM.
PPC moved the metric forward in the process, measuring success (and payment) based not on how many times the ad was served, but how many times it was actually clicked. When most people think of PPC they think of Adsense, Google's contextual advertising engine. But PPC is employed in banner advertising, on big ad farms like Doubleclick and other companies, and in some affiliate programs, though the number seems to be waning.
The latest incarnation of search engine based PPC (thanks to Google), works like this: you select keywords that you think people will use to search for stuff related to what you sell. For example, if you sell pretzel dough you might want to advertise under pretzels or making pretzels or something along those lines. Selecting keywords is way beyond the scope of this article, but there are plenty of companies out there that make a living helping you pick keywords.
Anyway, you then bid on those keywords and your ad is shown on the page with the search results.
With Adsense Google moved the context from the search engine results page to your web site content. It reads your site and decides what keywords to use to display advertising on your site, just as it would with a Google search.
For affiliate programs it's a little different, but the concept is the same. You choose the ads (or pay someone a piece of the action to choose the ads for you), and they get displayed on your pages. Rather than selecting the keywords explicitly, you are selecting the ads based on what you (or your agent) thinks people who have chosen to read your content may have an interest in seeing.
When someone clicks on the ad, you get paid. It's that simple.
For Adsense, appearing first on the list makes all the difference. A study suggests that being the #1 choice increases your chance of being clicked by up to 40%, because a lot of people don't look past the first entry (I always check the first few). The difference in bids between the first position and second position could be staggering. For example, 1900 people searched Google for the word tax yesterday. The top spot in Adsense would have cost you $25.12. Positions 2 and 3 drop to $6.96, and 4 and 5 would have cost you $4.24.
My experience with Adsense tells me that in this case the first position would probably pay Google close to $10.
As the publisher, this is a home run. Every time the person clicks I get a $5 bill. God, what a country!
As the advertiser, $10 to get the person in the door seems like a lot of money to me. If I'm selling a high margin item (like maybe tax software or one of those quickie tax loans), it seems like it may be okay.
But I still have to get them to buy. Conversion rates (getting the person to take some action once they've clicked on the ad and gone to your site) vary wildly, but I always use 1.5 - 3% of those who click on an ad. That means that 97 - 98.5% of the people who click on the ad do not buy. Let's use 2% as an example. That means that for all the five dollar bills flying into the publisher's pocket, only about 2 people out of every hundred will buy anything. So for every $1000 I spend I get 20 sales. That means that every sale costs me $50. Your results will vary, of course, depending on how targeted your keywords are and your industry and offer. Get the conversion up to 5%, for example, and you will be down to $20 per sale, which is a little better. I am designing a what-if tool to help with this, and I'll post it when it's ready.
One of the reasons for low conversion is probably click fraud. If an unscrupulous person wants to make money in PPC, all he needs to do is find a bunch of people (or computers) to click on the ads on his website continually, and he'll reap the rewards.
Barron's believes that the smart money is getting out of PPC. They cite FTD as an example:
Flower giant FTD Group (FTD) recently complained about the high price of search advertising. "During the Christmas season, certain online search engine costs increased significantly over the prior year, and as such we made the decision not to pursue the resulting high-cost order volume," said Michael Soenen, chief executive officer.
First off, let me just say that as an advertising exec I pitched FTD, and they didn't strike me as the brightest bulbs in the chandelier. That being said, it's easy to see why FTD wants out. Being #1 or #2 in the keyword Flowers around Valentine's Day would have cost between $6.25 and $10.00. There were 100,000 searches on the days close to VD on that keyword, and 11,500 on Flowers Delivered, which would have cost between $5.03 and $6.72.
Some simple arithmetic shows me that FTD nets about $6.20 per transaction across its network. So the transaction is either a wash or a loss. FTD is the number 1 ad on Google for their keywords, so I guess they decided to eat that first transaction, counting on continuity to save them. According to Barron's this isn't going to work either:
One industry executive noted that the lifetime value of a customer acquired through Google for his/her business had approached zero. Oops. So much for that theory.
So the answer seems to be that the big guys are getting out. Using the flowers example, though, the top 5 ads are FTD, ProFlowers, Hallmark, 1-800-Flowers and Teleflora. So I guess it's going to happen over time. So where is the future? According to the inventor of pay-per-click himself, Bill Gross (formerly of GoTo.com), the future is in pay-per-action, which moves the metric down to the final part of the Internet advertising transaction, where we think it belongs. There's a terrific article on Seochat.com that has more information on this. Pay-per-action is simple both parties have a stake in the outcome of the click.
More Articles.: Quality Guidelines Of Google Adword / Read about Ads / Web 2.0 Ad Serving
[ The Money making of a Niche ::Free Data Entry Work :: Imtiaztips Weblog :: Free Webmaster Articles :: More iPod Articles :: Download Freeware Software :: Updated Contents about Google AdSense for NEWBIES. ::ImtiazTips Online Business ]
Subscribe to:
Posts (Atom)