Pay Per Click, What is it and How Does it Work?

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What Is AdWords

Pay Per Click or PPC advertising allows many webmasters and bloggers to drive targeted traffic to their sites. The advertising itself is placed in the sponsor listings on search engines like Google, Yahoo, and many others. By placing a bid on a specific keyword phrase, the PPC search engine will place your ad accordingly. If someone bids higher than you do, then their ad will show up higher in the results than your ad.

As simple as PPC advertising might sound, it actually involves much more than just placing a bid on a specific keyword phrase. You must choose the right keyword phrases, test the conversion rates of each and set up a campaign that will allow you to gain sales and profits from your advertising. When use correctly, this type of advertising can create many sales and large profits.

However, many have lost their shirts, so to speak, because they thought they could just set up a PPC advertising campaign and bid on anything they wanted. They chose the wrong keyword phrases and ended up spending hundreds or even thousands of dollars without seeing any return on their investment. There are many stories out there of those that have failed with PPC advertising, but you don’t have to be one of them.

How Does PPC Work

How to Avoid Losing Money with PPC

1. Set a Budget

Most PPC programs have a daily, weekly or monthly budget tool you can use. The best thing you can do is set a daily budget for your campaigns. This allows you to keep your advertising within budget and will also make it easier to test the campaign thoroughly. Make sure you use this tool, especially at the beginning, so that you don’t waste hundreds of dollars on advertising with little or no return.

2. Test, Test, and Test Some More

It cannot be stressed enough how important testing is when you are trying to gain sales and profits through PPC advertising. With so many keyword phrase choices, it can be hard to know which ones will convert at a high rate and actually help you make money, gain subscribers and drive the right type of traffic to your website or blog. Make sure you use the budget feature and test each keyword phrase until you know how well it will convert and the price of each visitor to your website from it.

3. Avoid General Keyword Phrases

Most of the advertisers that lose money with PPC choose very general keyword phrases, like “weight loss”. General keyword phrases tend to be very competitive, highly expensive, and they don’t convert all that well. Instead of choosing something like “weight loss” to bid on, you want to choose more specific keyword phrases, like “lose 30 pounds in 30 days”.

Someone searching for “lose 30 pounds in 30 days” knows exactly what they are looking for, whereas someone searching for “weight loss” might just be doing research or may not really know exactly what they are looking for yet. The traffic you get from more specific keyword phrases will convert at a higher rate and will cost you less per click than that of very general and competitive keywords.

By using these three tips, you can put your PPC advertising campaign into motion. Make sure you use the budget feature, especially while testing, to help you narrow down a list of keyword phrases that convert well for you without costing you too much money. Once you find the right balance of cost versus profit, you can make money from your PPC advertising every single day.

 

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