Archive for the 'Pay-per-Click' Category
“Pay-per-Click”
Pay Per Click (PPC) campaigns are typically launched via Google, Yahoo!, or MSN. Each PPC campaign contains keywords and phrases that are bid on. The cost of each “click” depends on how competitive the term is, and how often it is searched.
A big part of PPC is performing an in-depth analysis on each and every keyword and key phrase to determine the “KEI”, or Keyword Effectiveness Index. This ensures that you pay for clicks that convert into customers instead of paying for useless traffic.
For instance, suppose the number of searches for a keyword is 486 per month and Google displays 214,234 results for that keyword. Then the ratio between the popularity and competitiveness for that keyword is 486 divided by 214,234. In this case, the KEI is 0.002. It can be quite easy to rank in the top 10 results for some search terms, but it can be very difficult for others. For this reason, the most popular search terms may not be the best terms to target. Consider using a portfolio-style of bid management that focuses strictly on ROI. Every PPC campaign will have a few “dogs” as well as “winners” - it is essential to find the “dogs” as they are the underperforming keywords.
Portfolio-style bid management ensures that every keyword is held accountable to an ROI standard. Some site mangers use ‘averages’ as the key metric for deciding whether or not a keyword is performing. Averages aren’t as functionally accurate.