21 Search Engine Terms Every Web Marketer Should Know Part 1. - PPC advertising with...
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4. Pay-Per-Click (PPC) advertising with the search engines is bidding for particular keyword phrases or search terms used most frequently by Internet users related to information on certain niches and sectors. Overture was the first great pay-per-click advertising sales channel for the search engines. It presently represents Yahoo, MSN, AOL, Alta Vista, Hot Bot, and related partners allowing advertisers to bid on particular keywords. Google presently runs its own PPC Search Engine advertising branch called Google's Adwords Select. Since PPC advertising is so expensive use it in moderation by setting daily and monthly budgets (otherwise for high volume searched keywords you could go broke).
After setting budgets, which you do in the Overture and Google advertising interfaces, use PPC to test your conversion rates for subscribers, sales, etc., and constantly monitor it and fine-tune it. You want to increase your conversation rates. This is critical because as we alluded to the expense of PPC in earlier in this article the typical major ad agency or corporate brand only spends $5 - $15 dollars to reach a thousand people (CPM). Although they may go higher for a responsive direct mail lists like $100 or $150 to reach a thousand people. In PPC advertising small business are usually paying at least 35 cents on the dollar (for any word with any real competition) to reach a thousand people or $350 dollars. I have seen and experienced people paying $2.50 a click or $2250 dollars to reach a thousand people.
The true expense of PPC is never discussed by experts in that industry. Any small business using PPC should have an outstanding product ready for prime time, to see any return in investment. Alternately, they should only use it for limited testing or to get a product quickly to market on-line. Given the expense of PPC some small business people might be better off buying classified direct response advertising in a niche publication or obtaining ad space in ezines.
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