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Pay Per Click Overview
Whether you are new to pay-per-click or have been doing it for years, please review this section which covers the basics of PPC. It is important that you understand the core concepts we discuss; additionally, different people use different terminology to say the same thing. We want to make sure you understand what we're talking about.

Pay-Per-Click advertising allows the search engines to earn revenue from the listings they return to searchers. They are compensated when someone clicks on an advertiser's listing. In other words, someone does a search on a word like "mortgage" and the engine returns both natural and Pay-Per-Click listings.

"Naturally," an engine may show "1-10 of 50,000,000 Listings" meaning it has indexed 50,000,000 pages containing the word mortgage and it is showing the top 10. In "Pay-Per-Click" the engine shows "sponsored listings" which are advertisements where advertisers have bid a certain dollar amount in order to receive clicks for searches on that keyword. In broad strokes, the highest bidder gets the highest rank, and so on down the line.

Keep in mind, advertisers do not pay the engine unless someone clicks on the link in the search engine.


The Value of "Pay Per Click"
With "Pay Per Click" (PPC) search engines, you only pay for the people who click on your link. This is an extremely important concept: PPC is a results-driven form of advertising. You only pay for clicks - not for the listing. Unlike banner ads, sponsorships and other forms of web advertising, which charge you for displaying your ad (or listing), PPC only charges you for actual traffic.


The Challenges with Pay Per Click
Sounds good, right? Here's the problem: all of your competitors can bid against you. The top listings, in basic terms, go to the highest bidders. Very often "bidding wars" are created and advertisers bid ridiculous prices for top listings. In the end, they pay too much for traffic and lose money on every sale they generate.


Do It Yourself Tools: Don't Do It Yourself!
As the industry matured, automated tools were developed to help "keep you at number 1", find "bid gaps" and let you manage your bids "easily". In reality, most advertisers spend hours a day overseeing their campaigns. Just because you have a better tool does not mean you know how to use it properly to maximize your profits. Many clients literally spent 60 hours a week and more, tied to these tools that were supposed to make their jobs easier.

By focusing on being #1 they miss the basic question: should you be #1? More often than not, the answer is "no". You can often do better at a lower rank, making more money on fewer transactions. If you overpay for traffic, you will turn a winning campaign into a losing one.


Focus on Profits, not Clicks
Most advertising models online focus on driving as much traffic as possible. Suppose you sell widgets. One in ten (1:10) people searching for "widget sales" buy from you, and each sale is worth $30 net. Theoretically, we should bid up to $3 per click: $3 x 10 visitors = $30 profit = break even).

If people searching for "new widgets" only convert one in fifty (1:50), we should not bid over $0.60 per click ($0.60 x 50 clicks = $30 profit = break even).

Now realize that you should have 10,000 to 100,000 different search phrases to contend with (if you have less, you are likely missing most of the terms you should be bidding on).

Realize that your conversion ratios are different for every search term, and will change day by day. You would need to check each of those hundreds of listings nearly fifty times a day to accurately profile the campaign. Do you understand the magnitude of the task at hand?

Now let's complicate it further... throughout the day your competitors are changing their bids. Not only is your "sweet spot" for generating profitable sales changing; your rank and competitors' bids are changing as well. Also, have you considered what copy to use for your search listings? Titles and Descriptions can have a huge impact on click through and conversion rates.

How can you possibly run a profitable campaign?


Trust Your Campaign to the Experts
You wouldn't ask your receptionist to balance your books. You wouldn't ask the graphic artists to write your contracts. Yet most companies let anyone in the office manage their Pay-Per-Click campaign. Why? They don't understand the complexities and implications, and fail to realize the tremendous losses they can suffer by having the wrong person without proper experience doing the job. It isn't their fault - no one went to school for this. It is a new media and requires experts who have managed millions of dollars in advertising generating more than $100,000,000 in value for its clients.


Your Success Requires Full Time Experts and Automation
A Pay-Per-Click campaign, whether it contains 100 or 100,000 search terms, requires full time management by experts. We are an objective team of marketing experts that:
  1. Review your website for search terms to include in the campaign
  2. Conduct extensive research to find additional search terms people use
  3. Link each term to specific content, pages or sections of your website
  4. Write the copy for each search term - both the Title and Description - to maximize results
  5. Manage your bids to ensure you do not overpay for traffic
  6. Track and build behavioral models of visitors to identify profit sources
  7. Optimize your bids and ranks to maximize profits, not traffic
  8. Generate comprehensive performance reports every week
  9. Audit the reports from the search engines to ensure you do not pay for fraudulent clicks
  10. The Cost of Proper Management is Low; the Savings is Tremendous
  11. The fees associated with managing your campaign vary by the size and number of terms in the campaign.
The cost savings, both in manpower and advertising efficiencies, typically exceed our fees by 200%-2000%. By making the right decision and outsourcing the management of your campaign to the experts, your profits can literally explode in just 30 days!



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