Pay per Click (PPC) refers directly to those advertisements that accompany Search Engine Result Pages (SERPs) generally along the right hand side as well at the top of the organic results. In Google the ones just above the organic results are currently shaded in yellow.
There are really only two metrics that matter when it comes to PPC … (1) CTR (Click through Rate) and (2) Conversion Rate. Click through Rate is simply the number of times a paid ad is clicked divided into the number of times the paid ad is displayed (impressions). Conversion Rate is the number of conversions (leads, sales, filled forms, subscriptions, etc) divided into the number of paid visits, generally to a specific landing page. In essence, PPC success can be fully assessed by focusing just on these 2 metrics.
The skills, the technology and the tools involved all point to the reasons why you should outsource your PPC efforts. The following lists the most important of these:
1. Extensive Keyword Research - no client or Internet Marketing Company knows at the outset the full set of keywords that require or deserve attention for online advertising. This requires sophisticated analysis using custom software and freely available online tools to identify and prioritize the keyword universe for the client project. It is not enough to just list the keywords and wing it … it doesn’t work. The research identifies what people really are searching and the research always results in surprises.
2. Competitive Research - to know what your competition is doing … down to the penny. Your competition is bidding on keywords and paying a Cost per Click (cpc) for every keyword. Knowing specifically what your competition is doing is obviously important in getting your bidding and positioning on the Google Search Engine Result Pages (SERPs).
3. Adtext - your ad copy must be written within specific guidelines and needs to be targeted to reflect the keyword of the searcher. Your Adtext and your bidding strategy are the ultimate determinants of your CTR.
4. A / B Testing - No one knows from the outset which Adtext will work best. This is why A / B Testing, even multivariate testing is critical to determine which Adtext works best by measuring the comparative and trending CTR. This is sometimes a moving target as measured over time. Obviously statistical analysis enters into the mix of elements to drive successful results. It’s an endless feedback loop to optimize CTR.
5. Landing Page Design - this is critical for conversions. Once your ad is clicked the searcher lands on a page, either on your website, or more likely, a specific page or URL that is visited only when the paid ad is clicked. The landing page clearly must be attention-getting, engaging and ultimately converting. Direct and obvious relevance to the keyword is a key element of the strategy. The call to action must be clear and logical. The value proposition must be basic, clear and obviously actionable. As with Adtext, A / B testing is essential as an ongoing process to optimize the conversion rate. The ability to quickly design new landing pages based on data-driven considerations is essential … your PPC Strategy is forever undergoing optimization because your targeted audience is forever evolving. Sophisticated “heat map software” and analysis is required to carry our all of the optimization steps. Where do they click, what keyword generated the click, from what point to they convert or exit; all of these questions and many more are addressed through expert heat map analysis to understand the on-page behavior i.e. what is working and what is not working and why.
As a practical consideration, the lion’s share of the cost of PPC is the cost of the click itself, paid directly to Google, et al. Without strong expertise to manage these costs, poor results will almost always be the result. This is true regardless of the size of your budget for such an endeavor. Assuming one individual can be hired to handle your entire SEM campaign, the cost of hiring, salary, benefits, ongoing education and training, etc is far more expensive the hiring an SEM company and paying them to manage your SEM campaign from A to Z.
Further, hire a full service Internet Marketing Company. The fact is that PPC should not be considered a stand-alone online marketing strategy; rather it should be a component of a well coordinated online strategy that includes Search Engine Optimization (SEO), Social Media Optimization, Social Bookmarking and more. All of these areas need to work together to efficiently achieve online success over the short and long term. Contact us if you have any questions or desire a no-obligation consultation.
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