So how does Pay Per Click advertising work? We will start with Google PPC advertising as it is the best established by examining it from the user experience. PPC Ads show up in two places on Google search results. Look first at the top of the results just under the search box and you will often see a box with a colored background containing up to three sponsored ads. After that look to the right and you will see up to six or seven ads displayed.
These ads are quite unlike the ads you see in the printed press as you have a very restricted display space. They have a headline, a few lines of text and then a link. Different ads are displayed each time you search so they must be regarded as 'one time only' display. On the other hand the ads are selected to match the search so the advertiser is getting an interested audience. You won't get ads for winter tires when the user is searching for diapers.
The reader can click on the link to be taken to the advertiser's website or affiliate link. Each time that happens Google makes a charge to the advertiser and can calculate the popularity of the ad.
Ads also appear on other's websites when the site owner subscribes to Google Adsense. These are marked as 'Ads from Google'.
Now let's look at what all of this means for a PPC advertiser. First, how can you decide if PPC is for you? It's a matter of doing some easy sums. Do not skip this bit because, if you do then you could end up paying out a lot of money very quickly.
In simple terms let's say you are paying $ 2 per click and getting 100 clicks per day which then gives you ten sales per day each of which generates $ 27. So income = $ 270, cost = $ 200 hence net profit on the day is $ 70. It might not seem much on its own but, if those are your figures, then if you can maintain them on autopilot and build another ten affiliate marketing websites or campaigns You can generate a decent income. Day after day, week after week.
How do you work on a new campaign to get it to perform? Here are three key steps for you.
Step 1 - Limit your exposure
With any campaign you need to limit your potential losses, whether it is a new campaign or one that is successful but could turn down. Set your daily budget to as large a figure as you could support for a few days if your campaign went badly. Google likes bigger budgets and tends to place the ad higher. Use the bidding option to set the "bid per click" manually. Now watch it very closely over the first few days so can take action if it is not working as you want.
Step 2 - Work on your ad's text to improve click-through rate
Check your 'click-through' rate in Google's reports. This is the percentage of clicks per number of times the ad is displayed. The better your rate the cheaper your ad cost will become. Run A/B tests comparing your current ad with a new one and keep the better performing.
Step 3 - evaluate your customer journey to get the maximum sales per 100 clicks
Let's assume that your customer journey runs like this. The Ad is seen and clicked by a prospect. This takes them to your affiliate page on your own website where you pre-sell the prospect on the opportunity. Then they link through to the vendors site and then finally to the payment page. That's not quite the end as there is the possibility of claims against the guarantee.
It's a fact of life, prospects drop out at every stage. You cannot control the vendor's site, but you can control anything on your site that prepares the prospect for that site and so increase conversions. Frequently you do not need a site of your own. No need to be proud, just measure and act according to the results. That way you can build yours to be the best affiliate program around.
Pay Per Click can easily give you, the affiliate marketer, instant prospect traffic. It will begin to flow within minutes of you setting up your campaign, but if you have set it up badly then it can cost a lot so keep an eye on it. Now you know a chunk more about how to make money on the Internet.
To Your Success!
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