Ppc Bid Management

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Pay per Click advertising is an excellent way to increase the visibility of a website. Increased visibility leads to increased conversions and a higher profit. Unfortunately, unless properly managed, pay per click costs can quickly grow out of hand, causing you to waste precious advertising dollars. Understanding the process behind bidding for pay per click ads and the mechanisms used for managing campaigns is the first step towards effectively bidding for PPC space.

Pay Per Click bidding works like any other auction. Potential advertisers ‘bid’ on time slots and placement positions; the highest bid, for the most part, gets the spot. Unfortunately, the very nature of bidding makes it nearly impossible to accurately bid. The importance of developing a process for managing bidding quickly becomes apparent.

One of the first steps towards properly managing your bidding process is determining the maximum cost per click you are willing to pay. There are several different methods of doing this; one involves research. By checking out ads on each of the search engines you are considering using, ...
... you are likely to be able to determine a starting bid. The other involves determining a maximum bid based on your profit margin. By considering your profit margin, for example $16.00/unit, and your conversion rate, for example 1%, you can determine that your maximum bid per click must not exceed $0.16. (Breakeven Point) This is basic but essential; the only way to justify an increase in your bid is to increase your conversion rate. We write extensively about PPC conversion optimization, specifically as it pertains to landing pages, relevance, calls to action and conversion funnels throughout the Optimum7 site.

Advertisers need to be sure to make a distinction between the different PPC programs they utilize (Google or Yahoo are two examples). What works for one program may not work for another. There are several key ideas to keep in mind.

1. Ad Placement †it isn’t always true that the top spot is the best spot. In fact, its price might make it too expensive. Instead, consider bidding on the second or third placement spots. These spots are typically less expensive and can still generate a large number of click-throughs, especially if your Adtext is well written with a high relevance coefficient vs. the targeted keyword or search.
2. Tracking †Tracking all inbound hits from your paid aids is critical. This information can help you determine which ads are working and why. You should also carefully track keywords and search terms to ensure your ads are tied to the most effective terms.
3. Software †there are several different types of PPC management software programs available. You should use these software, or ask the manager of your PPC campaign about the software they use. PPC Bid Management Software makes it much easier to manage multiple platforms and a high number of keywords, making it more efficient for the campaign.

At the end of the day all effective pay per click marketing campaigns are about numbers as well as an understanding of your prospective client base. Integrating your understanding of these elements will allow you to get the most out of each ad you place. Remember that ‘clicks’ are half the battle †you will still need to convert them once they arrive at your site; but the more effective your PPC, the more opportunities you will have at conversion.

Need help managing a PPC campaign? Contact us today!