The downside is that pay-per-click is essentially a bidding war. A higher bid than yours will lower your position on search engine results. This means that you will have to raise your bid to regain your position-which can obviously become quite expensive, especially if you are bidding on a popular keyword.
In order to determine if pay-per-click is a cost effective form of marketing for your business, you must do some computing to figure out how much each visitor to your site is worth. You can compute this value by dividing the profit you make on your website over a given period of time by the total number of visitors for that same time period. For example, if your site made $ 5,000 in profits and there were 2,500 hits, each visitor would be theoretically worth 50 cents. The basic formula is profits divided by visitors.
( click to see the video)The figure of 50 cents per visitor is the point at which your business breaks even. The idea, of course, is to show a profit, not to merely cover your costs. Therefore, you are aiming at a figure less than 50 cents per click.
Please leave your comments. They are welcome.
Dan and Deanna "Marketing Unscrambled"
4 comments:
Hi Dan and Deanna .. thanks for the information and for another video on PPC - they're always useful ..
Hilary Melton-Butcher
Positive Letters
Hello Hilary,
The videos add a lot. They have some good information in them, we can learn a lot from them.
Dan and Deanna "Marketing Unscrambled"
Hi Dan & Deanna
I like how you break down the cost vs profit for PPC. At the end of the day, that is the way to decide to PPC or not PPC.
Thanks,
Giovanna Garcia
Imperfect Action is better than No Action
Hello Giovanna,
Thank you for your comments. You are so right. The cost v. profit is the best way to choose this one.
Dan and Deanna "Marketing Unscrambled"
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