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Manage PPC or Pay Per Click Bid Management Skills and Techniques

Mon, Aug 6, 2012

Newsletter, PPC

Within the last few years many search engines have focused their profit earnings on pay per click revenues.  This has become a huge industry for the search engines resulting in billions of dollars each year.  The marketer or advertiser is depending on this form of marketing strategy to expose their business to the many World Wide Web users.

Marketers often look to the Pay Per Click campaign for the simple fact of its simplicity and the rapid results it produces.   Engaging in the / a Pay Per Click campaign can be one of the most useful campaigns of a marketers life.  A pay per click campaign can also be one of great failure if not managed properly.  Bidding for the top spot can often times be so costly that it is not worth the possible sale.

There are many factors your will want to take into consideration when performing a Pay Per Click campaign. PPC bid management is one.  PPC bid management will begin with identifying the maximum amount or cost per click the advertiser is willing to pay for a selected or given keyword phrase.  Knowing the value is mandatory in Pay Per Click advertising.  The cost per click will constantly be changing and will very from search to search.  Research to know the value of keywords or phrases.  If you do not know the value you will have to guess.  Research on the industry will be mandatory as well. One way to estimate a maximum cost per click bid would be taking the top five bids and computing the average.  Suppose that the bids for the word “travel” were $10, $15, $25, $20 and $50.  You would average the five and would then use that as your maximum cost per click.  This is just one way and an uneducated way to compute for cost per click.

A better approach to ppc bid management would be to base your cost per click bed on your profit margins.  Suppose you are selling a product that has a profit margin of 20%.  After the cost of the product you have $16 in profit dollars on each sale.  Assume that your conversion rate will be 1%.  Calculate that for every 100 visitors from your pay per click ad you are projecting one sale.  This would be a profit of $16 per 100 visitors.  This would leave 16 cents a click to spend.  This is an estimate and you may have more sales.  At the least you will not want to go over 16 cents per click.

PPC bid management is necessary to manage your campaigns across multiple search engines and provides the advertiser with a central source for tracking and analysis.

The marketer managing larger PPC campaigns might be looking for a more automated solution to assist in managing their bid process.  This is especially helpful for the marketer that has companies with a high volume of catalogs, targeting demographic and geographic might rely upon a bid management tool. For this marketer there will come a point in which it is too difficult to manage.  There are many bid management tools available on the market and many are useful.  The question is will it help you save time and will it help you save money?  Often times the cost is too high to justify.

Bid management is a tool that will help with your pay per click search engine campaigns.  However, it is not a tool that does all the work.  The advertiser will still need to perform.   Ad content and landing page testing and turning will not be a benefit of the bid management tool.  The advertiser will have to process these.

Many marketers chose to use a bid management tool to assist in managing long tail keywords.  These keywords can result in huge dividend.  Long tail keywords are often time extremely profitable for many companies.  These yield a fair amount of money.  Long tail keywords are also less competitive than the major ones but do require the advertiser to implement huge number of keywords.

Bid management tools are priced from $200 – $500 and up.  The cost is not inexpensive.  The campaigning can get quite expensive and the marketer or advertiser wants to make certain he knows what he is doing. Google conversion optimizer is one such tool this tool will help you manage pay per click bids.  The tool is free for advertisers using Ad Words but the advertiser must have 30 conversions in the past 30 say to use the tool.

PPC BidMax is another tool that is a dynamic bid maximize designed to help the advertiser manage campaigns with the big 3 search engines.  The big 3 being; Google, Yahoo, and Bing.

How you manage your pay per click search engine campaign will vary.  You may choose to utilize tools.  You may choose to do it all personally with record keeping and analysis.  You may chose to hire a professional to help you with the research of keywords, content of your advert for your website and accurate keyword and analysis of your campaign.  This is often times the best choice for many marketers as the professional is an expert in the research and knowledge of the search engines and the industries.  You may choose a professional for selecting the keywords, or the content and monitoring the campaign or just one of the steps.  It will depend on what the marketer can and wants to handle them.  Pay Per Click campaigning requires much research and much knowledge of the industry and it requires daily work.  It can be accomplished by the marketer or advertiser themselves and it can be accomplished by the first time marketer.  However, you will not have the most profitable campaign without much research and knowledge of the search engines and keywords and you will not be attracting the most “ideal” visitor if your ad content is not the best composed content to entice the ideal prospect to click and from there to purchase.  There are many factors to consider when pay per click campaigning.

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