This Is How PPC Bid Management Works!
Very simply, PPC Bid Management allows you to have an expert optimize your website and online advertisements. The PPC Manager bases advertising costs via a bidding process where you bid for keywords on internet search engines. The prices of these keywords are determined by the relevance of the word to your website (strength of the word) as well as popularity and how in demand they are (how many others are also bidding on the word).
PPC Bidding Example:
The word ‘Nike’ is a far more competitive word than the word ‘shoes’. The person who bids for the word ‘Nike’ will pay a higher price to have it listed on, lets say, Google AdWords, than the person who is trying to get a place for their keyword ‘shoes’.
And as with any bidding those who are willing to pay the most get the prize, which in this case is the top ad position for your website.
How to Get Started with PPC Management – Decide on your Cost Per Click
Each time a visitor clicks on your website you pay the same amount that you bid for your keyword, this is called ‘pay per click’ or PPC. To get your PPC Bid Management started you need to identify the maximum cost per click, or CPC, you are willing to spend for a keyword phrase.
CPC’s change over time and from search engine to search engine.
This is because the CPC is often dependent on a set ‘rule of thumb’ within a particular industry or on factors like profit margins. If you are not comfortable using the CPC based on the ‘rule of thumb’ already in place you can hire a PPC manager before engaging PPC Bid Campaigns. If you want to try creating a campaign yourself you could try using a simple calculation where you average out the top five current bids. You could base your CPC on the profit margin for the product or service you are advertising.
Profit Margin CPC Example:
If your product sells for $100 each and your profit margin is 20%, then you are left with $20 profit each time you make a sale. If you expect 1 sale from 100 click-throughs on your PPC ads, you will make $20 profit which needs to spread over the 100 visitors you must pay for. This equates to 20 cents per click (CPC= .20)
I Decided On My CPC – Now What?
Now you can start bidding. This is where it becomes extremely important for you to develop a strategy for managing the bidding process. It is important to focus on promoting your website in the most effective way. One way to be successful at this is to build many PPC Campaigns and lists across multiple engines. However, these lists also need to be monitored and studied in terms of assessing performance.
Ultimately, you need to analyze what value you are receiving in relation to what you are spending.
Analyzing PPC Value Example:
PPC Campaign 1 (CPC = .20) gets 500 clicks and makes 4 sales. The cost of the campaign is $100 (.20×500) and the profit is $80 (4×20). After PPC costs, this campaign’s profit is -$20.
PPC Campaign 2 (CPC = .30) gets 200 clicks and makes 4 sales. The cost of the campaign is $60 (.3×200) and the profit is $80 (4×20). After PPC costs, this campaign’s profit is $20 (80-60).
Although Campaign 1 appears to get more clicks and has a lower CPC, it makes negative profits while Campaign 2 makes a positive profit.
If you run multiple campaigns across multiple search engines this analysis can become very time consuming and can get very complex very fast. This is why many website owners opt for using PPC Management services. If this is you, you may consider investigating hiring a good PPC Bid Manager to help you get the best results you possibly can. After all, the best results mean the most profit, keeping you ahead of the competition.
One avenue to explore is using a web based subscription for PPC Management or purchasing software specifically developed for tracking PPC bids and profits. These types of programs contain more functions than a normal online marketing tool.
More About PPC Management Secrets
Most often pay per click secrets are based on experiences of people who can offer better ways to do things, but usually pay per click secrets offer the reader a way to get advertising at a lower cost.