The World of Internet Marketing

Pay Per Click Is A Tricky Business

Pay per click can be tricky and very risky as well.  For those of you that don’t know what Pay per click is or PPC for short, that is where advertisers pay for their advertising via text ads on search engines and/or partner websites.

PPC advertising is big business, it’s how Google became the giant that they are today.  It definitely has its pros and cons though.  One thing is for sure, there are very few cons for the search engines, Yahoo and Bing included.

In this post I am going to talk about the pros and cons of PPC as it applies to the advertiser’s end of things.  The great thing about advertising this way is that you don’t pay unless someone clicks on your ad.  The not so great thing is that when someone does click on your ad and go to your website, you pay whether they buy something from you or not.  Believe it or not, there are some companies and industries with deep pockets that pay upwards of $40.00 per click!  But don’t worry, the average person doesn’t play ball in those niches.

The vast majority of people that search on search engines don’t even recognize that there is advertising going on when they are searching.  The sections are entitled “sponsored links” and are all in text on the top and right-hand side of the page after you put in a search term and hit enter.

Back in the glory days of Internet Marketing PPC was very easy.  Even a novice could setup a campaign and still be profitable 9 out of 10 times.  Fast forward to today and that simply is not the case.  Those days are over!  There are a tremendous amount of rules, which were pioneered by our friends at Google.  Things like the double serving rule, quality score and much more…

Needless to say that if you are lucky, you might be profitable 3 out of every 10 campaigns.  The obvious objective is to spend less than you make, which is your return on investment or ROI for short.  One of the most volatile things about PPC is that it can turn on a dime and what was profitable today might not be profitable tomorrow.  Your money can evaporate very quickly if you don’t watch it very closely.  It might be OK for the big name branding type companies to do that but not your average company that needs to be profitable.

I will end with this.  To be profitable in the PPC game today, you most likely need a little bit of an edge.  There are many spy tools out there that will help.  The best ones are ones that analyze and monitor ads that are running and let you know the ones that perform the best over time.  You can then clone (not copy) them and give yourself the best chance for success, but even then there are no guarantees.

Tags: , ,

Sunday, March 28th, 2010 Pay-Per-Click (PPC)

No comments yet.

Leave a comment

January 2018
« Jul