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Pay-Per-Click
Pay-per-click (PPC
search engines can give you instant traffic and allow you to test
new business models in real time. However, the pay-per-click market is
competitive. It is worth spending an extensive period of time learning how to write
and target ads, tracking your competitors, and doing deep keyword research before
jumping in.
Before You Start
Metrics-Based Marketing
PPC search engines provide a highly trackable marketing medium. Frequently,
people begin marketing without any idea as to the approximate value of a click. If
you do not set up a value range and track the results, you have no way to
distinguish good marketing from bad marketing.
To know the value of a click, you need to decide what the goal of your marketing
is. If you are just branding, then you should expect to lose money to gain
mindshare or reinforce your brand, and tracking direct results may not be as
important a goal. If you are using pay-per-click search engines for direct product
marketing, you need to know how much each click is worth.
Typical Conversion Rates
Lead generation sites typically have a conversion rate around 10% to 12%, but can
go as high as 30%+ if they are properly targeted and exceptionally appealing to
visitors.
Since little investment is needed to arrive at your website, and many other sites are
just a click away, selling stuff on the web has a conversion rate similar to direct mail
advertising. High ticket items have a lower conversion rate and unique, cheap
items tend to have higher conversion rates. Many stores find typical conversion
rates might be anywhere from .3 to 5%.


Chapter
10