Pay per click or ppc advertising as it is sometimes known as is a very quick and easy way to generate website traffic especially targeted website traffic. However, it can be a really expensive way if you do not know what you are doing. A lot of people starting out in online marketing tend to jump straight in when setting up there pay per click campaigns, they see what they think is a great affiliate product that they can promote, pick out about 25 keywords, put a few ads up on Google AdWords and that’s it, instant riches. How wrong can you be.
When you are promoting products online using pay per click advertising you should start out quite small. Take for example, you are promoting a $67 affiliate product, the $67 being your commission from ClickBank the online digital retailer. Its a well known fact that the average conversion on this site for most products is between 1% and 2% which simply means for every 100 visitors you send to an offer you get 1 or 2 sales. What you should do is pick out around 10 or so relative keywords to the site you are promoting, set up a Google AdWords campaign for each of these keywords carefully choosing your ad title and text IE make sure your keyword is in your ad title where possible and also in your ad body to help your click through and quality score.
Now that you have your ads set up comes the tricky part. We know that the average product converts at around 1% so what we want to do is place a bid of 1% of our commission on each of our keywords, in our example case the bid should be set for around 0.67cents. What you do not want to do is after you get 100 clicks shut your campaign down just because you did not get a sale, you need to let the campaign run until you get about 500 clicks, this way you can see that your keyword is either converting for you or it is a complete dud. If it converts for you really well, meaning around 2% to 5% you should consider raising your bid to get higher ad position, on the other hand if it only converts around.5% you need to think about changing the text in your ads to make your ads stand out more, if this doesn’t help it is probably not worth the effort.
I know that some people are on a very tight budget, so I would highly recommend that you start out with one keyword at a time and have a daily budget of around $5 to $10, yes it will take longer but it could be worth it in the long run, if the keywords a winner and it converts at 2% this means 100% profit.