USING PAY-PER-CLICK MARKETING

PROFITABLYJeff Coleman

Internet Marketing Geek

This is No Ordinary AuctionPPC x CTR x QS = Position PPC = Price per Click or Bid CTR = Click-thru Rate QS = Quality Score of Landing Page/Site Position = Where you are on the page

Relevance matters!

Basics of Bidding

Bid = maximum amount you are willing to pay per click

A bid ≠ Cost per Click (CPC) CPC typically 25-40% less than bid Must set a default bid per AdGroup Can adjust individual keywords bids, if

desired Google sets minimum bids

Setting Default Bids

Changing Individual Bids

Determining a Bid Price Use Google’s Traffic Estimator

Sometimes bid prices are much too low Other resources for bid prices

SpyFu.comKeyCompete.com iSpionage.com

Set bid price lower than Google’s estimate to start

Use traffic estimator after campaign is running

Google Estimator

https://adwords.google.com/select/KeywordToolExternal

Enter a keyword phrase Under choose columns to display,

choose “Show All”

Bidding Strategies that Work Bid high to start, then lower bid Control costs with bid adjustments, not

daily budgets Do NOT use Google’s click maximizing

tool Test different positions, and not just

bids, to maximize ROI Peel & stick

Peel & Stick

Improve CTR & minimum bid Move keyword to new AdGroup and

write matching adOnly valuable for higher volume keywordsAssumes current ad is not a “tight” fit

Eye Tracking Heat Maps

Eye Tracking Heat Maps

Eye Tracking Heat Maps

Reducing Minimum Bids

It’s possible to reduce minimum bids: Add keyword to the ad, preferably the

headline Peel & stick Tighten up the ad group Send to a landing page with keywords

How Much is Too Much to Pay? Only you can answer that question Understand your visitor’s value Requires a clear understanding of

conversions

Focus on Conversions

Cost per conversion is primary goal Get lower on the page for better

conversion rate Get out of the first spot if you want to

reduce cost per conversion

Campaign Profitability

Calculate the value of a new customer

Profit per Customer

X Conversion Rate

= Maximum Cost per Click

Goal is to make >$1 for every $1 spent

Be Aware

Google prefers incremental changesAvoid dramatic changes in bidsDon’t pause and unpause keywords

frequentlyKeep one existing ad at least a week when

creating new ones Campaign/Account longevity matters

http://www.perrymarshall.com/google-quality-score-comparison/

Sales Funnel effect

Constantly Changing Marketplace Changing bids New competitors Updated ads Google “adjustments”

Requires constant vigilance

Getting Relevant Clicks

Add negative keywordsEliminate words that do not convertGet rid of irrelevant phrases

Focus on exact and phrase match Understand the value of a conversion

Summary

Bid = maximum amount you are willing to pay per click

CPC is typically 25-40% below bid Use tools to determine current bids Focus on cost per conversion Use incremental changes Narrow traffic to relevant terms

Next Steps

Take the Quiz Determine the approximate bids you are

going to use for launching your campaign

Continue on to Week 3, Part 2