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First of all, there are two kinds of links in search engines. The links are either unpaid (the ones on the left side that the search engine finds and ranks) or paid (the links on the right side), as shown next. The paid links are the PPC ads. You pay to place these ads in search engines.
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As the name suggests, you pay when someone clicks on your ad. There is no charge for showing your ad. Your ads can appear in a search engine thousands of times, but you pay only when someone clicks. You can t use paid listings to affect your unpaid listing. Paid listings won t get you into the unpaid listings or have any effect on your unpaid listing s ranking. Before that click happened, the visitors took several steps: They searched for your products and services in a search engine, they saw that your keywords matched theirs, and they clicked on your ad. When the customers click the ad, they may come to a landing page, where they are assured they have found the product they are seeking and can buy it. You use analytics tools to study the results and adjust the campaigns to improve the results. You place bids on your keywords to affect your ad s position. In general, the more you bid, the higher your ad will rank (we will discuss the details later). PPC campaigns can be targeted to countries, states, or cities. You can even target neighborhoods and parts of cities. Analytics lets you see where your customers are, so you can target your advertising to where it works. Because you don t pay if the visitors don t click, you can test new keywords and ads for free. The tracking tools show which keywords work, along with statistics on those keywords.
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Our Site Is at the Top of Google: Why Should We Pay for PPC
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We often meet people who tell us that they are already number one in Google. So why should they spend money in PPC Won t they just be paying for clicks that they already get for free In many cases, they are indeed at the top of Google, but only for their company name. If someone searches for the company name, they should be the first listing. However, if customers search for products, the company generally isn t at the top or even on the first page. By using PPC, they can be on the first page for their products and services. It s like Koi-Planet.com, which is number one for its own name. Google nearly always will rank a website as number one on a search for the site. But if you search for koi, the website isn t on the first ten pages. So Koi-Planet.com should use PPC to sell koi. Look in your analytics and see what your customers are using to find your site. If all your search terms are just your company name, but not the names of your products, that means your company is only getting the visitors who already know you. You re not getting the customers who are looking for your category of products. There is also the business case. By using PPC, you ll make additional sales. If you keep the cost of PPC within your CPA, you make extra profitable sales.
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CHAPTER 6:
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More revenues and profits will help you reach your breakeven point quicker. Once you ve passed the breakeven costs point, your profit margin becomes much larger. Although you should add PPC, that s not all. You ll learn in this chapter that you should add all additional advertising media that are appropriate for your business. If radio, TV, newspapers, and PDAs can help your company be more easily found by your audience, you should use those outlets if you can do so profitably. You make more sales, reach your breakeven costs quicker, and reap greater profits. Thus, you can invest the profits into your company and grow faster.
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