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7 Secrets for Pay-Per-Click Success
By: Brent Sampson
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    2005-06-08

    Table of Contents:
  • 7 Secrets for Pay-Per-Click Success
  • Overture provides more...
  • Understand the mechanics...
  • Understand the disadvantages...

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    7 Secrets for Pay-Per-Click Success


    (Page 1 of 4 )

    “Pay-for-Performance” or “Pay-per-Click” Internet advertising is making big waves lately, and the two biggest players are Google and Overture, which was recently purchased by Yahoo.Microsoft has since joined the fray with MSN Search and there are numerous other fish (albeit tadpoles) in the pond.

    When it comes to promotion, the advantages of internet advertising over traditional print advertising can be summed up with the following acronym-rich equation: CPC - CPM = PPC. That's CMO-speak for expressing how much more cost effective cost-per-conversion analysis is to cost-per-thousand analysis.

    With Pay Per Click advertising via Google and Overture, the cost of the ad is based upon the performance of the ad; however, the effectiveness of the ad is gauged by its conversion ratio. Thanks to tools provided by both Google and Overture, these conversion ratios can be calculated automatically.

    Traditional print media, on the other hand, provides a CPM (cost per thousand) to demonstrate cost (value) of an ad. A certain number of people will see the ad (and believe me, this number is pie-in-the-sky, based upon circulation times "readership"). Therefore, the cost is X.

    It's easy to recognize the advantages of pay per click advertising, but before jumping head first into the PPC arena, review the following tips:

    1) Be aware of the differences between Google and Overture

    Google is the leading search engine at the moment, but their reach never exceeds their grasp. Overture technology, on the other hand, currently extends to Yahoo, AltaVista, CNN, Infospace, and others. Overture requires you to deposit money into an account in advance. Said account is then depleted based upon your campaign selection. Meanwhile, Google simply bills your credit card based upon your expenditures.

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