How to Refine Your PPC Strategy

One of the many ways you can get the most out of your efforts to earn money on-line is by using PPC strategically.

Pay-per-click (PPC) advertising is an essential marketing tool for any Internet-based business using it to boost sales. Basically, PPC means that advertisers only pay when someone clicks on their ads to go to their website.

With PPC, the traffic that you receive can be extremely targeted, depending on your choice of keywords. Major PPC platforms, like Google AdWords, Yahoo Search Marketing and Microsoft AdCenter are ones that you should really get to know. Of course, there’s a learning curve associated with each one but if you get to know the ins and outs of how they can pay out for you, applying the principles behind their strategies can be financially rewarding.

As with any business decision, once you decide to use PPC you should have a solid strategy in place. If you’re in the early stages of establishing your business online, you can study how other businesses’ PPC strategies, and follow the advice posted by more seasoned business owners.

Before you start eating into your advertising budget though, you should set up metrics to measure the success of your advertising campaign. After all, you can’t measure how successful your PPC strategy results are if you don’t establish your goals and some baselines.

Do your homework and find out what your break even point should be. Knowing this number will help you determine what will be an acceptable cost per conversion (or cost per click). Again, know your numbers. Most especially, know what numbers you need to know.

For example: let’s say that you make $50 per sale. You have to first find out what your conversion rate is, to determine what your cost per conversion will be.

Suppose that your traffic converts at 2%, so every 100 visitors will result in 2 sales. That means that you can afford to pay up to $100 or $1 per click for 100 clicks to reach your break even point. Estimating the conversion rate will help you decide how much you can afford to bid per click.

The more you know your target market, the more you will save on PPC advertising costs, so it’s vital for you to do your market research. If you know that your customers are mostly from the US and they shop online during certain hours of the day, targeting the right countries and turning off your campaigns during certain times of the day can save you a lot of money.

Test and track to see how your ads are performing. Always split test your ads. Keep the better performing ad and write a new ad to try to beat that one. Incremental improvements in the click-through ratio (CTR) can help you improve your ad position while preserving your cost per click.

In the long run, continual improvements in your ads can help you beat your current records. You should also invest time into researching keywords related to your market and keeping up with the trends associated with your product.

To manage your campaigns more efficiently, you have to plan well and set up your ad groups properly. When you conduct your keyword research, try to group related keywords into separate ad groups. Then write different ads for each group. The more targeted your ads are, the better their quality score. A high quality score will help you lower your bids.

These are just a few suggestions to get you started. Don’t compare yourself with your competition, just keep focus on improving and refining your actions so you keep getting better results.

There are tons of online resources available to help you learn PPC. Be sure to set aside a budget for educating yourself. There is a steep learning curve for PPC and you have to be prepared feel like you’re losing some money in the beginning. However, once you master the techniques, you can drive targeted traffic to any website on demand.

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