Most Internet marketing tactics take three months or more to generate any type of significant results. Whether you’re currently using search engine optimization, social media promotion or content marketing, solid results take time to appear. Pay-Per-Click marketing is a great way to achieve instant return on investment while waiting for other marketing efforts to kick in.
What is Pay-Per-Click Marketing?
Also known as PPC, Pay-Per-Click marketing is a technique that allows advertisers to buy ad space online, normally in the form of ad spots on search results pages. The advertiser pays a predetermined amount of money, ranging from a few cents to $20 or more, every time someone clicks on their ad.
How Does it Affect Return on Investment?
The concept behind PPC is very simple: You bid to have your advertisement appear on search results pages or on certain websites when a keyword is entered as search query. If you win the bid, you pay every time someone clicks on your advertisement, and hope that visitors who clicked on the ad will turn into paying customers.
Pricing the Clicks and Determining Profit
Luckily, in the vast majority of cases, you’ll be able to turn a nice profit with a minimal per-click bid amount. For example, if you’re selling purses online for $500 per purse, and your bid amount per click is $9, expect to spend between $72 and $90 on 8 to 10 clicks before selling your purse. Keep in mind that the average conversion rate for PPC campaigns is about 2 percent and that your per click bid will also be affected by other companies who are bidding for the same spot.