Pay per click advertising management is the process of determining what search terms we want to have our ads show up for, writing and testing ads that have the most impact, and managing the bidding process (paid advertising rates are determined by real time auctions).

Effective ad and bid management ensures that you’re getting the most beneficial “clicks” (ones that result in sales or leads), the most “clicks”, and the cheapest “clicks” (each “click” is a visitor to your site).

GOALS:

  • Find the best search phrases to target for ads

  • Determine the absolute best ads to run for each search phrase

  • Determine the correct target cost per click

  • Manage the bidding process to ensure the highest value clicks, the most of them, and at the cheapest cost per click

  • Establish re-marketing to ensure you’re getting the best value for your investment

  • Effectively track and manage the ROI

pay per click advertising

HOW DOES IT WORK?:

Determining a cost per click goal is the most important part of this process. The best way to describe it is with an example. Typically, some of the variables necessary are educated guesses, and some are from actual data. There is always an opportunity to re-assess once the campaign goes live.

Let’s say we have a real estate agent who is targeting out of town buyers:

how it all works
  • He knows from experience that a lead that becomes a buyer usually results in an average commission of $4,500

  • He knows from experience that 1 in 10 leads becomes a buyer, so each lead is worth $450

  • The pay per click management company knows from experience that 10% of “clicks” become leads

  • So, if each click cost $45, we would break even. For $450, we’d get 10 clicks and 1 lead. Therefore, our cost per click target should be lower than $45. Typically we would look for a 50-100% ROI, so our target would be $22.50 per click

  • Please note that normally, clicks are in the .20 – 2.00 range, so this is an extreme example (and one reason real estate agents do so well with pay per click!)

Finding the correct search phrases to target is normally done through proprietary software. The goal is to examine historical search volume and trends to determine what search phrases are searched for the most, have the most commercial intent, and are the cheapest cost per click. The perfect search phrase has lots of people typing it into Google, results in great leads or purchases, and has the potential for the lowest cost per click.

After the search phrases are decided on (normally 10-500 are picked as targets), they are segmented into ad groups so that keywords that are similar can have the same ads written for them. Ads are written for all the ad groups (usually 2 for each) and starting bids are determined. The campaign is now ready to turn on, and the ads will begin to show immediately.

Now, the constant management process can begin. Normally pay per click campaigns must be monitored several times per week. Ad performance, bids, search phrases, ad groups, and conversion rates must all be examined and adjusted. Only in this way will the “sweet spot” of clicks and cost be reached to meet the cost per click goal.

As this is all being established, graphical banner ads are being developed for the remarketing campaign. The system is set up so that it tracks every visitor to your company’s website. As this person leaves your site, the ad serving platform is smart enough to start showing the graphical banners on all the websites that person goes to afterwards.

ppc advertising

The idea is that consumers will see the message multiple times and then become a customer or lead. It’s a unique and VERY powerful way to ensure that you get the most out of every dollar you spend on pay per click advertising. For an example, let’s say that Joan visits the Raleigh Nail Salon site to check out the packages and pricing. She thinks about making an appointment, but moves on.

She surfs the web over to her favorite blog, or a forum she hangs out on, and all of a sudden no matter where she goes and what kind of site it is that she’s visiting, she begins to see graphical ads for Raleigh Nail Salon. This works on almost a subconscious level to increase the conversion rate of your pay per click traffic.

RETURN ON INVESTMENT:

return on investment
  • New customers – Pay per click advertising is typically a great way to attract new customers as people search for products and services that they’re interested in and will come across your site. 

    It can be more powerful in some ways than search engine optimization (even though only 30% of the available clicks go to the paid ads) because you are unlimited in the number of search phrases you can target (unlike search engine optimization where you can only reasonably target a small handful of search phrases).

    With re-marketing added into the mix, pay per click marketing becomes one of the quickest and most effective ways to get new customers.

  • Keep existing customers – Not normally as powerful here, however, many people use Google as their yellow pages/address book. See the search engine optimization return on investment section for an example.

  • Increase revenue from each sale – There is usually not much of an impact on this with pay per click.