Introduction to Paid Search
If you already own an internet business, then you have discovered by now, just how important it is to have a powerful online presence. In particular, making yourself easily accessible to potential buyers, who are looking for what you are offering. Of course, your ideal would be to have your business obtain and hold, the number one ranking in the natural listings of the search engines. But as you know, that is not always possible – especially since the methods that search engines use to rank websites, are changing constantly. A faster, more effective approach – and one adopted by many internet businesses today – is Pay-Per-Click advertising. Properly executed, it can help your business prosper, by placing your compelling offer in front of the correctly-targeted, hungry crowd!
There are many uses for pay-per-click. Always remember that pay-per-click is a vehicle to drive targeted traffic to your desired web page, and can be used in all sorts of creative ways.
You can use pay-per-click to drive traffic to sales pages for direct sales. Drive traffic to opt-in pages to build your opt-in lists. Drive traffic to lead generators offering free reports to build up your marketing funnel. Drive traffic to survey forms for market research.
Again, it’s all up to your imagination, and the most desired action you require from your visitor. There are many popular pay-per-click search engines, that you can use on the internet.
What is Pay-Per-Click?
Before anything else, let’s answer a very important question: What exactly is pay-per-click? “As the name implies, it is an advertising medium, in which an advertiser pays to have his advertisements viewed by prospective customers.”
Advertising and Ad Publishing
The first is described in the definition above. Ad publishing, on the other hand, can be defined as the following: “The display of advertisements on a website, which gives visitors a chance to visit the URL of the advertiser’s choice.” Pay-per-click is a concept that has been around for a long time. The company that first started it all was Overture (now a part of Yahoo! Search Marketing), in 1998.
Since then, pay-per-click has evolved greatly as marketers and consumers alike grew more and more savvy as this medium grew more and more popular. Pay-per-click is also the vehicle of choice that newbies tend to use for driving traffic to their websites. Unfortunately, they often jump onto the bandwagon without learning the basics of marketing and the technicalities of pay-per-click, thus often incurring ridiculously high costs and quitting internet marketing as a result. So widespread is this phenomenon, that the Advertising end, (known as Google “Adwords”), has often been labeled “The Newbie Graveyard.” However, if proper due diligence is carried out by you, payper-click has the potential to drive hordes of targeted traffic, to wherever you want it to go!
Advertising With Pay-Per-Click
Pay-per-click advertising is one of the greatest inventions of online marketing. Gone are the offline, direct-mail-order days – where you could be waiting days, weeks, or even months, to test out each of your marketing campaigns. With pay-per-click, advertisements, sales letters and offers can be tested with a global audience in as little as 5 minutes’ time.
Statistics in various areas are also easily obtained, which allows you to easily tweak your ad campaigns to maximize profits and cut out the losers fast. A/B split-testing allows you to split-test headlines, images, and many other elements of your sales page. This saves you a lot of time and guesswork, resulting in maximization of profits.
Let’s walk through an example of a pay-per-click campaign. Let’s say an author of a dog-training ebook wants to promote his ebook with pay-per-click advertising.
Let’s call him Tom.
He signs up with one of the pay-per-click search engines, which happens to be Google, and goes on to create an ad that leads to the sales letter of his ebook, which is hosted on his site.
In the process of setting up his campaign, Tom finds out the average cost per click and other relevant information, and decides that he can afford to spend $0.50 per click to break even. Thus, he decides to set $0.50 as his “maximum cost per click”.
Within minutes of creating the advertisement, it goes live. Mary is the new proud owner of a poodle and wants to learn how to train it. She decides to seek help from the internet.
She goes to Google.com, types in “how to train my dog”, and is presented with the Search Engine Results Page, or SERP: The red ink highlights the paid ads. Mary spots Tom’s ad and clicks on it. In this process, Tom pays about $0.50 for that click, and Mary is directed to Tom’s site.
Mary loves what she sees, and purchases his ebook, resulting in a successful sale. And that, is a very simplified account of how a pay-per-click campaign works.
Ad Publishing
This other end of the pay-per-click advertising model allows content publishers to earn money from having ads displayed on their sites.
For example, Jack has a site that informs people about where to find the cheapest hotels in his area. He sets aside a certain amount of space to have Google ads displayed.
Here is what one of his ad blocks looks like: A tourist stumbles upon his site and clicks on one of the links to find out more about “cheap hotels”. The advertiser behind the ad is then charged a certain amount of money for that click, out of which a certain percentage is allocated to Jack.
This, in essence, is ad publishing. What Jack has done is to insert a piece of javascript code onto his site. What happened after that is that Google has “decided” what the theme of his site is about, and has thus aptly displayed the relevant ads.
Pay-Per-Click Terminology
Every specialty has it’s own puzzling jargon. The following list will have you speaking like a true pay-per-click master:
- CTR: “Click-through rate”. The percentage of visitors to the website displaying your ad, who click on your ad and go “through” to the ad’s target web-page.
- CPM: “Cost Per Thousand Impressions”. The cost per thousand “impressions” of your ad, on the displaying page. eCPM: “Effective Cost Per Thousand”. The CPM is adjusted to take into account other, relevant factors.
- CPT: “Cost Per Thousand”. The same as CPM.
- CPI: “Cost Per Impression”. The cost of a single impression of your ad.
- PPC: “Pay Per Click”. What we’re talking about here! The entire system of displaying your ads on the internet, by paying a set cost for each “click” on your ad.
- PPI: “Pay per interaction”. A variation of PPC, where you pay a set cost for each “interaction” resulting from your ad.
- CPA: “Cost Per Action”. A calculation of what it is costing you, to get one visitor to take a particular action you desire.
- CPC: “Cost Per Click”. The specific subset of CPA, where the action you want the visitor to take, is to click your ad.
- eCPA: “Effective Cost Per Action”. The CPA, adjusted to take into account other, relevant factors.
- SERP: “Search Engine Results Page”. When you enter a “keyword” (or several keywords) in the search box of a search engine, that engine returns a page-by-page listing of web-pages, that match your keyword(s).
- XML: A markup language that supplies a set of standards for programmers to follow. But for our purposes, XML provides us with the ability to paste a simple piece of code into our web page and thus, easily obtain an automated content “feed”.
- ROI: “Return On Investment”. The percentage of your original investment, that you get in profits. For instance, in our dog-training example, Tom “invested” $0.50 per click. Let’s say that Mary bought his ebook which costs $50. And let’s also say that Mary was the 50th person who clicked on Tom’s ad, the other 49 of whom did not buy Tom’s ebook. Then Tom’s cost was $0.50 per click x 50 clickers = $25.00. Which means Tom’s profit was Mary’s $50.00 purchase – Tom’s $25.00 cost = $25.00. Thus, Tom made $25.00 profit on his total “investment” of $25.00. Therefore, his ROI is 100%.
Top Pay-Per-Click Search Engines
Google AdWords
A cost of $5 is required to set up an account. However, this $5 gets credited into your account as well so it does not go to waste. Bids start at $0.01, but as you know by now, competition is very fierce on this search engine and you should be realistic and realize that you very often have to pay far more than $0.01 for your clicks.
Yahoo! Search Marketing
Yahoo!’s flagship product provides sponsored listings in search results on the Web’s top portals and search engines, reaching over 80% of active Internet users. It pioneered the pay-per-click search engine model in 1997,after seeing a need for a more focused search engine. After operating as GoTo.com for about 8 years, the name was changed to Overture and in 2005, it was renamed Yahoo! Search Marketing.
ABC Search
ABC Search is currently having a promotion and matches any initial deposit up to $100 delivering qualified Pay-Per-Click traffic. 2.5 billion monthly searches are conducted on ABC Search and is certainly worth a look at.
SearchFeed
Advertising with Searchfeed.com provides a level of personal service every online advertiser deserves, extending an ad campaign to its fullest potential. Searchfeed.com offers exposure to millions of unique visitors each day on a costper-
click basis, determined by the advertiser. By only establishing partnerships with Web properties that operate in accordance with industry acceptable standards,
keyword buys deliver the strongest Return On Investment (ROI).
7Search
The 7Search advertising program generates quality website traffic on behalf of thousands of advertisers through its payper-click (bid for placement) search engine.
Currently providing sponsored results for over 1.5 Billion searches per month, 7Search specializes in serving website owners of “low profit margin” categories of business that cannot afford to pay over ten cents per visitor.
MIVA
MIVA is a network of partner sites powering over 2 billion searches monthly. The network includes sites such as CNet.com, InfoSpace and WorldNews. MIVA provides a full suite of management tools to help you maximize your earnings. Get $25 in your account when you sign up with Miva today!
Enhance Interactive
You can open an Enhance account for $50 get a $25 bonus to new advertisers if you’re a new Enhance user. It is a payper-click network that allows you to efficiently and costeffectively extend the reach of your search campaigns. The Enhance network receives over 2 billion targeted searches monthly.
Findology
Findology is dedicated to provide you with highly targeted, quality traffic. With their customized technology and performance based advertising, they deliver the traffic that your company is looking for. By bidding on relevant keywords and listing your site, you will reach their entire network of partners. The program is built for any budget and you will only pay when potential customers click on your listings.
Microsoft AdCenter
Signing up with Microsoft adCenter is quick and easy with a $5 signup fee. If you’re spending $30 a day in search advertising you can take advantage of QuickLaunch and have one of the Microsoft Media Specialists help you plan, create, execute, and analyze your first adCenter campaign.
GoClick.Com
GoClick.Com has special systems in place to make sure that you are only charged for unique clicks and not overcharged for your online advertising. You can request any remaining funds be returned to you at any time. There are no membership fees to use our service at all.