Wednesday, April 12, 2006

Putting Up a Good Fight: Steps On Managing PPC Advertising Battle

Starting and running business today requires more than a good idea, a spoonful of gambled investment, a sensible business proposal, hard work, enthusiasm, perseverance, and stoke of luck. It also requires a complete mastery of the personal computer.

Computers are the modern businessperson's communications, managerial, and information center. That is why most businesses resort into some of the digital ways of doing business online. One of them is the so-called "pay per click" advertising.

Basically, PPC advertising is a straightforward form of doing advertisements. Just like it's traditional counterpart, PPC advertising is paid. Though, the concept behind PPC advertising is based on a pay-per-click basis. Hence, the company will have to pay those bid amounts every time a PPC search engines directs a potential buyer to the business site. This goes to show that the advertisers will only pay when a customer had clicked the company's advertisement.

Best of all, with PPC advertising, businesses are able to reach a wider market share. Since the information in the Internet is globally distributed, most businesses are assured of a global market reach.

However, since PPC advertising is, on its basic sense, a bidding activity, there's a higher probability that a higher bid of one ad can always beat the other. The solution: manage your PPC advertising. To do that, you have to do the following:


Set a specific target. For example, you are currently in rank # 8, it's better if you would set your mind into reaching rank #2. In this way, you would find ways how to achieve that goal.

To do this, find out how much the advertiser in rank # 2 pays for the ad. For example, if they are paying $0.35 per click, you may bid $0.37 to reach that rank.

However, set a limit also on how much you should pay for the ad. Say, if your maximum budget for each pay per click ad is only $1.00, then aim for rank #2 without sacrificing your budget. Most often than not, keyword prices perk up whenever there are more people bidding on the same item.

Bear in mind that PPC advertising is relatively a ranking activity. This means that ads that have higher bids will definitely be on the higher positions compared to those that have lower bids. Therefore, businesses with a lower bid have to boost their offers in order to get a higher ranking. In turn, this can be very costly especially if the business is bidding on a common search engine keyword.


Calculate the amount of gaps you have with the your competitors. Track down how much your competitor pays per click. For example, if you are currently paying $0.50 per click, and you've discovered that your next-in-rank competitor is only paying $0.40, it would be best that you close the gap immediately. That is, opt for a lower amount than what you are currently paying, say, $0.46. In this way, you'll be saving more money but you're still placed on a higher position than your competitor.


It really pays to be disciplined especially if you're dealing with money. If you've set a limit of $1.00 per click, then never opt for advertisements that will cost you more than what you can afford even if it means getting rank #1.

The best thing to do is to wait until the price depreciates. You may be losing more if you choose to take chances on a higher bid amount. Plus, you may end up bidding more if your competitor will not cut loose.

Indeed, the success of PPC advertising is, in turn, a case-to-case basis. This means that the higher you bid on the keyword that connects to your merchandise, the higher your rank, the more chances of getting more people to your website. Likewise, the more common a certain keyword is, the higher the business should bid on it in order to gain a higher position on the PPC search engines, and a higher bid means more expenses.

But this doesn't mean that you have to grab whatever chances there is just to get to a higher rank even if it means more hefty charges you have to pay. The rule of thumb is: know your way around. If you know how to play the game, chances are you'll win.

About the author:

Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner. Collect more free software and bonus content for your own web site at

Visit our sponsor


Post a Comment

<< Home