Wednesday, February 26, 2014

46- An In-Depth Review Of Pay Per Click Marketing

An In-Depth Review Of Pay Per Click Marketing

An In-Depth Review Of Pay Per Click Marketing

The advent of the internet has dramatically altered how most business entities conduct their revenue generation operations, and in particular their marketing strategies. Due to the boundless and dynamic nature of this amazing platform, many commercial establishments are now more than ever embracing the extremely lucrative inbound marketing. Which has quickly established a solid track record on cross-industries online marketing strategies, ensuring online merchants achieve and even exceed their desired return on investment (ROI).

One of the most effective components of inbound marketing happens to be paid search, which is otherwise referred to as pay per click (PPC). This ingenious, but somewhat intricate online marketing strategy works by allowing online business to achieve enhanced visibility and drive more traffic to their ecommerce websites. Simply by placing advertisements related to their various products/services on popular search engines such as Google, and Bing. Or on websites and affiliate marketing networks and websites solely dedicated to display such ads that are commonly known as content sites.

To this end there are generally 2 kinds of PPC marketing strategies which online businesses can opt for which are:

Flat rate PPC 

In this type of paid search, an online merchant enters into an understanding with a content site network or owner to display his/her ads. In exchange for a flat fee for each click the advertisements will elicit. This PPC strategy is especially rampant among comparison shopping engines.

Bid-based PPC 

Bid-based PPC entails an online merchant placing a bid in an automated auction carried out by a publisher or advertising network. In the hope of earning a strategic position for their advertisements in content sites or networks, every time a user enters a search related to his/her ad.

Google AdWords is an excellent example of this type of paid search, where numerous online businesses compete for strategic placement of their ads on SERPS. The criteria used to determine placements are usually the ad's quality, and their relevance to the search parameter of a user.

One good thing about bid-based PPC is that an advertiser can quickly appraise the effectiveness of his/her campaign, with aid of crucial software such as Google analytics. Some of the pertinent factors that come into play in such an analysis include: keyword choice, grouping and relevance, and even suitable landing pages.

As it is these metrics can promptly assist an online merchant to discover and fine-tune their PPC campaign's most viable keyword groupings, and even negative ones to effectively reach out to their targeted audience. This obviously ultimately leads such leads to be converted into customers. 
Let us now examine some of the most vital metrics that anyone wishing to launch an effective PPC campaign must consider to ascertain its viability.

Click Through rate (CTR) 

This simply is the rates your ads are displayed over the number of clicks they receive (click/impressions). As would be expected these values are subject to inevitable variations over any duration of time based on the distinct trends of one industry to another. You can analyze CTR on a single keyword in your PPC marketing campaign or if you are inclined to it, a keyword grouping.

Quality score 

This happens to be the rankings a PPC ad can achieve on SERPS or content sites, which are usually based on the following factors:

• Your ad's CTR history 
• The level of your landing page's quality and relevance to a user's search query 
• Relevance of your PPC's campaign chosen keywords to your ad text, and more pertinently to a user's search query parameters.

It is worthwhile to note that the quality score and ultimately the relevance of your PPC campaign can at times achieve a higher ranking. Even over a competitor that might have placed a higher bid, but has an irrelevant keyword selection. This is particularly true of Google's AdWords where rankings are meted out not only to high bids, but also quality of a PPC campaign in a given category. The most important thing to reflect on while crafting your PPC campaign is to offer an enhanced user experience to every one that clicks on your ad.

You can optimize your PPC campaign by:

• Using tightly-organized and keyword relevant ad groups. 
• Craft relevant and keyword optimized landing pages. 
• Integrate effective keywords in your ad text. 
• Use captivating calls to actions in your ad text.

Conversion numbers and rates 

These are perhaps the most vital PPC campaign metrics any one wishing to evaluate the effectiveness of such efforts, particularly for businesses that rely on ecommerce for their existence. Naturally, the primary aim of any business's marketing strategy, be it inbound or outbound is to promote more sales.

By judging how many numbers of conversions your PPC ad campaign has yielded, you can be in an excellent position to evaluate the viability of the keywords you used. Further, you can use this data to snowball your future campaign. Additionally, you can also identify the least lucrative keywords and keywords grouping, and then re-craft them into much better ones, or even drop them altogether.

Return on investment (ROI) 

Obviously any marketing campaign can never be deemed as effective without it having offsetting and more importantly exceeded the costs you might have had to meet to execute it. This essential paid search metric takes into equation all the expenses you will have to meet. Before analyzing all the revenue you have generated from that particular ad campaign, in regards to the number of conversions it has yielded. 

Some of the most common expenses you might have to consider before determining the ROI of your PPC campaign include: the cost per click of each ad, cost of designing the advertisement or even the money you might have had to spent on third-party management of your PPC account.

Final Word 

These are by far not the only metrics you will have to ponder on before you determine how effective your PPC campaign might be. However, thanks to accurate and in-depth software such as Google analytics, you can efficiently appraise the viability of such efforts, and fine-tune them to yield more ROI.

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