Why Pay Per Click Can be Very Profitable
Understanding Pay Per Click Advertising
While we have shaded out our clients business, this will give you a good idea of how it all works. The ad on the left is displayed on the top, right hand side, and bottom of Google search pages.
You can see that the first ad has performed very strong. There were 3731 impressions which means the ad was shown that many times. Out of those 3,731 impressions there were 182 clicks to their website. That of course is the CTR (click through rate). 4.88% of those people clicked through to our clients website.
The Avg CPC is the average cost for each time a prospect clicked through to their website.
You can now see the cost for all those clicks on the right hand side. So how is this profitable?
If you are selling a $2.00 item, it’s not. In fact if you run the numbers and understand that 1% – 2% of those going to your website will actually purchase, any product or service selling for at least $300 – $400 makes this a profitable campaign.
Keep in mind that your average cost per click varies depending on your products or services, and the amount of competition for those keywords.
There are some MAJOR factors thqt can truly make pay per click profitable by increasing your conversions, let’s look at how our campaigns achieve that kind of success.
Choosing the Correct Keywords
1. While you might think it easy to choose your keywords, there really is a method to increase your conversions.
2. A prospect looking for sheds as an example might put sheds into the search engines. Someone that places sheds for sale are 3 x more likely to purchase.
3. There are several keyword tools our firm uses to understand the proper selling and long tail keywords. These are longer keywords being used by your prospects to find your products. These keywords many times are less expensive than your main keywords.