Internet Marketing jargon is as complex as other tech related industries and one thing I get asked a lot is “What is PPC marketing?”.
Well, simply put, PPC or Pay Per Click is method of generating traffic using advertising systems like Google Adwords or MSN adCenter.
This method can be extremely effective and financially rewarding, but it can also cause major problems to the inexperienced.
The process of using PPC is as follows:
- You choose the product/s to promote.
- Pick the keywords that you want to focus on, ideally “buying” keywords
- You create your website content or sales page
- You purchase adverts in Google, Yahoo/MSN etc
- The visitor sees the advert, clicks through to your site, then hopefully buys or clicks through to the affiliate and buys.
As you can see, the key thing here is that you have to PAY for the advertising, normally on a per click basis, so if 10,000 people see the advert but only 1 person click it you only pay once.
The cost of adverts also varies wildly depending on a lot of factors, so picking the right keyword at the right cost is vital.
If your advert costs $1 a click you need to make at least $1 per click in sales (on average) to just break even.
This is where the inexperienced have problems, as it is very, VERY easy to spend a lot of money on adverts without earning a penny back. Either the visitor didnt like your content or didnt like the product.
There is definitely an art to PPC, as even changing a single word can increase (or potentially decrease) your click through rate (CTR – it means the percentage of the number of people that click the advert versus the number that view the advert), so it involves a lot of testing and a lot of throwing money at things to see if they work.
When they work they often work well, but I would advise if you are new to internet marketing, to leave PPC alone until you have studied it more and have some disposable income.