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Getting Started with PPC Management





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What is PPC?

You may have heard that a healthy dose of PPC advertising might be just what your business needs—but what is PPC advertising? PPC stands for pay-per-click. It is the standard term for advertising your products and services on search engines, social media platforms and across the web. You may also hear PPC called cost-per-click (CPC) or search engine marketing (SEM). Now you know the name for those ads that pop up when you search on Google.

Each time someone searches for a keyword on Google, there is an instant auction to determine which ads will show. These auctions are controlled in part by bids set by each business that advertises through AdWords. The business determines how much they are willing to pay for a click on their ad for that particular keyword. That bid, as well as a keyword rating called a “Quality Score,” will determine which ads get shown and in what order. If a user clicks on an ad, that business is charged for the click (hence the name pay-per-click).

Importance of PPc advertising strategy

We know what goal we want our PPC Campaign to achieve. We have been able to quantify our goal. We want to now go ahead and start advertising.

Diving in without a strategy and a well thought out operating plan can be suicidal. The campaigns go live – expectations abound, after a few days – results are no where close to expectations, random tinkering starts – frequent bid changes, ad copy tweaks, landing page edits, keyword list expansion , however, results worsen – panic sets in – a few thousand dollars have been blown – jobs are at stake.

You have the Goal and the Key Metric. Now you need a plan to achieve these. Create Plan A – path you will adopt along with definite checkpoints. Moreover, always have a Plan B ready.

Making the Long Tail Keyword Strategy Work

Your PPC Campaign has 30,000 keywords. The challenge is out of these just 100 keywords have ever converter for you! The long tail keywords that you had hoped would work aren’t. You don’t know where to start cleaning up the keyword list. The performance numbers have reached a plateau.

In 99% cases large keyword lists result due to random keyword additions. Normally, any keyword generation tool worth its salt could generate hundreds and thousands of keywords for any PPC category. To compound the troubles, while keywords are constantly added very little is done towards removing/replacing non-performing keywords.

As a result you land up with a bloated list of non-performing keywords. Analyze how many keywords have converted in the last 6 months, how many have generated just clicks but no conversions and how many have not even generated clicks. Have a keyword replacement strategy for each segment.

Unless brand visibility is a key metric, the ideal keyword mix would look like this: converting keywords: Keyword with only clicks: keywords with only impressions:: 1:8:30. Hence, if you have 100 converting keywords, the total keywords should be 4000-4500. If you have more keywords, they would not even be drawing impressions!

How to Reduce Dependence on the Top 20 Keywords

Normally, these keywords are the top ones for all the category players. Hence, they are almost always the most expensive keywords, as well. They are normally not profitable (with the exception of trademark keywords). However, you still need to be present on these keywords just to “attract numbers/mass”.

The Top 20 keyword is a phenomenon that’s valid for majority of retailers (especially, the small and medium sized search marketers). The marketer should set quarterly goals to lower the dependence on top 20 keywords. They should have definite plans to achieve the goals. Suggested tactics: More Intensive keyword testing, use of site search results for keyword generation, use of analytics (click path) data, use variants of the converting keywords. Also try using some competitor keywords.

Do Longer Keywords Convert Better

We wanted to test if there was a co-relation between the length of keyword phrase and conversion rate (%conversions/clicks). 7 retailer accounts (each comprising 5000-10000 keywords) were selected for the test. We created a table where we recorded the % of total conversions from one word, two word, three word, four word, five word or more keyword phrases. This was done on a quarterly basis from Q1,2006 to Q1,2008 (Please see the chart on next page)
Other Objectives of the Test:
- Is the actual keyword conversion funnel an inverted cone?
- How much has the average length of a converting keyword changed in 2 years?

There was a progressive reduction in the percentage of conversions contributed by one (17%-13%) and two word (57% to 50%) keyword phrases. The contribution of three word keyword phrases increased the most (22% to 31%). Four word, Five word keyword phrases also showed an increase in % conversion contribution. The average converting keyword length has increased by about 11% from 2.05 to 2.28.

The inverted keyword conversion funnel seems to be a representation of the “perfect scenario” (probably more applicable at an individual level). However, at an aggregated buyer/searcher level, the funnel is not as perfectly shaped.

The buyer/searchers are using longer keyword phrases. However, on an aggregate level, the buyer/searcher sophistication (here the assumption is longer keyword phrases indicate greater sophistication) has increased moderately
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