Pay-Per-Click or PPC is an advertising model used on the Internet in which the payment is based solely on the qualifying clicks on the ads. The advertiser signs up with an online advertising agency such as FastClick, ValueClick, etc and agrees to have their ads distributed on the providers network and/or their partners. Search engines also offer PPC programs and the better known ones are Google (Google AdWords Select), Overture, Looksmart, and FindWhat. An affiliate program that pays for a click is also a PPC program. In the early days of Internet advertising, payment was based on the number of impressions of the ad and the key term there was CPM or Cost per Million of impressions.
PPC is the more popular medium of online advertising today as the advertiser is only paying per click. Most of the online agencies that offer PPC programs have technology in place to detect and disqualify fraudulent clicks. Fraudulent impressions and clicks were the bane of online advertising on the Internet a few years ago.
Cost-per-click or CPC is the amount that an advertiser pays the online advertising network or agency for a click. PPC and CPC have been known to be used interchangeably but PPC relates to payment while CPC relates to the cost. CPC can be an exact amount per click such as 10 cents per click or 5 cents per click. Some providers, like Google, use a model where the advertiser 'bids' for a keyword and specifies his maximum bid.
Conversion rate is the percentage of visitors to your web site that have clicked on your ad that then took a desired action such as purchased a product at your web site, signed up for your services, signed up for your newsletter, etc. One of the major goals of a good PPC strategy is to maximize conversion rate. A potential visitor to your web site may be turned away if your ad is not well-targeted or is simply not visible. Once the visitor is on your web site, having clicked on your ad, your web site needs to be convince your visitor to make the purchase. Usability, compelling copy, product guarantees and information that does not overwhelm become the key to a good conversion rate.
ROI stands for Return on Investment. There are many methods for calculating Return on Investment. Good reading material on ROI is available on the Cre8asiteforums:
Favourite ROI Tracking Methods..
What is a Good
Conversion rate?
Google AdWords Select has become the most popular online advertising program. It is a fully customizable program with a minimum CPC rate of 5 cents per click. Google is modest enough to say "The success of our advertising program is built upon the success of our advertisers." - however, the success of Google AdWords is based on the 'clean' image of Google and the success of its search engine, among other factors.
Andrew Goodman has written a superb ebook called "21 ways to Maximize Your ROI from Google AdWords Select" that can be used as a workbook when you launch your AdWords campaign or as a tool to improve your ongoing campaigns. Andrew Goodman details how to use effective copy-writing, develop keywords or key-phrases, test and bid with immediate results. Every page is filled with relevant and practical advice. Just as you can see your ads immediately with Google Adwords, you can see immediate results by following the strategies and pearls of wisdom laid down in "21 ways to Maximize Your ROI from Google AdWords Select."
This e-book is selling for $49 currently. The price is expected to go up to $149 shortly.
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