To promote your business online and increase sales, using pay per click advertising is a powerful channel. However, this method is not suitable for everyone. You may wonder how to decide if pay per click advertising services can help boost your business.
A simple way to tell is by examining the profitability of your pay per click keywords. With that, you can easily determine for yourself whether you can benefit from PPC advertising.
However if you have new to pay per click program, you may not be familiar with keywords and their role in ppc.
In all PPC advertising, all ads you place are related to some keywords. Not only are they used to match with the keywords in various online websites that are participating to display your ads, they also determine the amount of advertising costs that you will pay.
If you want your ads are seen by the right people, there are a couple of important factors to consider during your keyword selection for your pay per click ads.
1) Relevancy of your keywords
The keywords you choose should be related to your products or services that you are promoting.
2) Popularity of your keywords
It is wise to choose keywords that are being actively sought in the search engines.
Once you have determined which keywords to use, the next step is for you to go to http://adwords.google.com/select/KeywordToolExternal and determine how much you are expected to pay for your chosen keyword.
The next step in determining if it is profitable to continue with your ppc campaign, do take a moment and look at what are you selling. Subtract from your product selling price the estimated keyword cost that you were given. Decide whether it is still a positive gain for you.
The above formula is a simple way to calculate the return on a pay per click advertising campaign. On top of that, there are some additional factors that need to be factored in. For example
1) The cost per click can vary from time to time.
2) Not all the clicks result in a sale.
So for a more accurate estimate of profitability, you should factor in those two factors and you will have a better estimate of your return on investment of your participation in a pay per click program.
In summary, you can determine whether pay per click advertising is for you by simply estimating the amount of money you have to pay for PPC advertising and its returns.