What is pay per click?
Pay Per Click (PPC) is simply an advertising medium which allows you to get traffic through to your website and you simply pay for each click you receive, if you receive no clicks then you pay nothing. Lots of people are mislead by how pay per click works, for each keyword you have you set how much you want to pay per click. Where companies are misled is that they then think that who ever is willing to pay the highest pay per click goes to the top, this simply is not the case. Search engines thrive on providing quality in their search results otherwise it reflects badly on them, in order to provide quality results they have to base the ordering of their pay per click results based on a combination of both the price per click and the quality and relevancy of the websites content.
Another part to PPC that a lot of companies are unaware of is how the bidding actually works. If for instance you set your maximum price per click to £1 and this was substantial to land you the top spot and your nearest competitor has their maximum price per click set to £0.60 then you would find yourself only having to pay £0.61 per click instead of the £1 per click that you are prepared to pay.
The Advantages and Disadvantages
There are many advantages and disadvantage to participating in Pay Per Click campaigns. The main advantage is that with PPC you get instant exposure unlike SEO which requires months of work before seeing results. The correct research needs to be carried out before throwing any budget at PPC. The best way to approach Pay Per Click is to compile a comprehensive list of keywords associated with your products / services and run them through keyword planners provided by the likes of Google Adwords and Bing Ads. These tools will give you a rough idea how much it will cost per click for first page exposure. Once you know how much you’re a going to be paying per click you can then divide your average order value by the cost per click.
Breakdown of the Figures
If your average order value is £100 and your cost per click is forecast at £1 per click then you need to be making at least 1 sale out of every 100 clicks just to break even. No business minded person wants to just break even so its up to you to determine what would be satisfactory as a minimum expectancy to make things worth while.
On a daily basis we see many companies running pay per click campaigns at a loss without even realising it. We can help do the necessary research to discover whether pay per click can profitable for your company. The process begins as follows: