Online Seo For Beginners: return on investment in PPC

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<span style="color: #e06666; font-family: Georgia, Times New Roman, serif; font-size: x-large;"><b>How Pay-per-Click Works</b></span><br />
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<a href="http://onlineseoclassroomforbeginners.blogspot.com/2015/04/how-this-complicated-pay-per-click-works.html" target="_blank"><img alt="pay per click" border="0" height="434" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgL9IElhgwKLHemU1MBT-yMFp1DGUZ3mrwjnY14bO1_ljATtNTcpBacTIp4LFi0N1y0WBcTU3D3ngekJQnDoAlfBt1HQFuILpUSF4JPNCw31ePEcNcAr81YdvwjRb3xlwSHuNiFH5fII-A/s1600/teamwork.jpg" title="ppc working" width="640" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b>Pay-per-click marketing</b> is an advertising method that enables you to buy <i>search engine</i> placement </span><span style="font-family: Georgia, 'Times New Roman', serif;">by bidding on <i>keywords or phrases</i>. </span><br />
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<span style="font-family: Georgia, 'Times New Roman', serif;">There are two different types of <b>PPC marketing</b>. </span></div>
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<span style="color: #cc0000;"><span style="font-family: Georgia, 'Times New Roman', serif;">In the first type, you pay a fee for an actual </span><b style="font-family: Georgia, 'Times New Roman', serif;"><a href="http://onlineseoclassroomforbeginners.blogspot.com/2014/08/basics-of-serp-crawlers-and-page-rank.html" target="_blank">SERP</a></b><span style="font-family: Georgia, 'Times New Roman', serif;"><a href="http://onlineseoclassroomforbeginners.blogspot.com/2014/08/basics-of-serp-crawlers-and-page-rank.html" target="_blank"> ranking</a>, and in some cases you also pay a </span><i style="font-family: Georgia, 'Times New Roman', serif;">per-click</i><span style="font-family: Georgia, 'Times New Roman', serif;"> fee, meaning the more you pay, the higher in the returned results your page will rank. </span></span></blockquote>
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<span style="color: #cc0000;"><span style="font-family: Georgia, 'Times New Roman', serif;"></span><span style="font-family: Georgia, 'Times New Roman', serif;">The second type is more along true advertising lines. This type of<i> PPC marketing</i> involves bidding on <i><a href="http://onlineseoclassroomforbeginners.blogspot.com/2014/11/keywords-and-your-web-site.html" target="_blank">keywords or phrases</a></i> that appear in, or are associated with, text advertisements. Google is probably the most notable provider of this service. </span></span></blockquote>
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<span style="font-family: Georgia, 'Times New Roman', serif;">Google’s AdWords service, shown in Figure, is an excellent example of how PPC advertisements work.</span></div>
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<b><span style="color: #e06666; font-family: Georgia, Times New Roman, serif; font-size: large;">Determining visitor value</span></b><br />
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<a href="http://onlineseoclassroomforbeginners.blogspot.com/2015/04/understanding-heuristics.html" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;" target="_blank"><img alt="ppc" border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVR5Jpho0wRvicNub_2yA5frSFMfawQWHOzymU-6UDMEwrk5HGBouBG6akXXkOuLawC8aZmMZttZe-vuqW-n7bFAUMBI37YUaZ0134GLj2ZCThlzr1gfajAQgQTSlimx1e_0b2Jnzfbgg/s1600/values.jpg" title="visitor value" width="320" /></a></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; text-align: justify;">The first thing that you need to do when you begin considering <b>PPC strategies</b> is to determine how much each web site visitor is worth to you. It’s important to know this number, because otherwise you could find yourself paying far too much for keyword advertising that doesn’t bring the traffic or conversions that you expect. </span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; text-align: justify;">For example, if it costs you $25 to gain a conversion (or sale) but the value of that conversion is only $15, then you’re losing a lot of money </span><span style="font-family: Georgia, 'Times New Roman', serif; text-align: justify;"><i><a href="http://onlineseoclassroomforbeginners.blogspot.com/2015/04/pay-per-clickppc-and-search-engine.html" target="_blank">PPC</a></i> advertisements are those that you see at the top and on the sides of <i>search pages</i>.</span></div>
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<a href="http://onlineseoclassroomforbeginners.blogspot.com/2015/04/pay-per-clickppc-and-search-engine.html" target="_blank"><img alt="search engine optimization" border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNwhRFnA3sXbCViLhXqWis3yUSOLwYhsZcg_5xHX4i4FtKDbzkYuAvlVhleeF6agkMS9NtIW60_LrLL38GS7uCWymcpaQjBjAyYoB2APT2Iz6R9DllH7znMxCALSMTbW_FbDv9FR9nsnQ/s1600/FIG6.png" title="ads by google" width="640" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">To determine the value of each web site visitor, you need some historical data about the number  of visitors to your site in a given amount of time (e.g., a month) and the actual sales numbers (or profit) for that same time period. This is where it’s good to have some kind of web metrics program to keep track of your site statistics. If you divide the profit by the number of visitors for the same time frame, the result should tell you (approximately) what each visitor is worth. </span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">For example, suppose that during December, your site cleared $2,500. (In this admittedly simplified example, we’re ignoring various other factors you would have to figure into an actual profit and loss statement.) Suppose also that during the same month, 15,000 visitors came to your site. Note that this number is for all the visitors to your site, not just the ones who made a purchase. You divide your $2,500 profit by all the visitors, purchasers or not, because this gives you an accurate average value of every visitor to your site. Not every visitor will make a purchase, but you have to go through a number of non-purchasing visitors to get to those who will purchase.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">Back to the formula for the value of a visitor: Divide the site profit for December ($2,500) by the number of visitors (15,000) and the value of your visitors is approximately $.17 per visitor. This value is approximate because during any given month (or whatever time frame you choose) the number of visitors and the amount of profit will vary. The way you slice the time can change your average visitor value by a few cents to a few dollars, depending on your site traffic. (Again, the example is based on the value of all visitors, not just conversions, which might be a more valid real-life way of calculating the value of individual visitors; but this example is simply to demonstrate the principle.)</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">The number you get for visitor value is a sort of break-even point. It means you can spend up to $.17 per visitor on <b>keywords</b> or other promotions without losing money; but if you’re spending more than that without increasing sales and profits, you’re going in the hole. It’s not good business to spend everything you make (or more) to draw visitors to the site, but note the preceding italicized words.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">If a $.25 keyword can raise your sales and profits dramatically, then it may be worth buying that </span><span style="font-family: Georgia, 'Times New Roman', serif;">word. In this oversimplified example, you need to decide how much you can realistically spend on <i>keywords</i> or other promotions. Maybe you feel a particular <i>keyword</i> is powerful enough that you can spend $.12 per click for it, and raise your sales and visitor value substantially. </span><br />
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<span style="font-family: Georgia, 'Times New Roman', serif;">You have to decide what profit margin you want and what promotions are likely to provide it. As you can see, there are a number of variables. Real life is dynamic and eludes static examples. Whatever you decide, you shouldn’t spend everything you make on <b>PPC</b> programs. There are far too many other things that you need to invest in.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">Popular <i>keyword phrases</i> can often run much more than $.12 per click. In fact, some of the most popular <i>keywords</i> can run as much as $50 (yes, fifty dollars) per click. To stretch your PPC budget, you can choose less popular terms that are much less expensive but that provide good results for the investment that you do make. Putting <i>pay-per-click</i> to work Now that you have your average visitor value, you can begin to look at the different <i>keywords</i> on which you might bid. Before you do, however, you need to look at a few more things. </span><br />
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<span style="font-family: Georgia, Times New Roman, serif;"><u>One of the main mistakes made with <b>PPC</b> programs is that users don’t take the time to clarify what it is they hope to gain from using a PPC service.</u> It’s not enough for your PPC program to have a goal of increasing your <b>ROI (return on investment)</b>. You need something more quantifiable than just the desire to increase profit. How much would you like to increase your profit? How many visitors will it take to reach the desired increase?</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">Let’s say that right now each visit to your site is worth $.50, using our simplified example, and your average monthly profit is $5,000. That means that your site receives 10,000 visits per month. Now you need to decide how much you’d like to increase your profit. </span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">For this example, let’s say that you want to increase it to $7,500. To do that, if each visitor is worth $.50, you would need to increase the number of visits to your site to 15,000 per month. Therefore, the goal for your<b> PPC </b>program should be to increase profit $2,500 by driving an additional 5,000 visits per month. Now you have a concrete, quantifiable measurement by which you can track your <b>PPC</b> campaigns.</span></div>
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Once you know what you want to spend, and what your goals are, you can begin to look at the different types of PPC programs that might work for you. Although keywords are the main PPC element associated with <b><a href="http://onlineseoclassroomforbeginners.blogspot.com/2015/04/pay-per-clickppc-and-search-engine.html" target="_blank">PPC marketing</a></b>, there are other types of PPC programs to consider as well.<br />
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How this complicated Pay-per-Click Works

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