Tuesday, January 10, 2012

PPC Search Marketing: How To Selecting And Bidding Keywords

In this article you will find out two things you need to pay attention to when you are doing PPC (Pay Per Click) search marketing. First of all, we will talk about how you should find out the best bidding price for your PPC ads, then we will talk about how you should choose your keywords. After you finish reading this article, you should be able to start creating an effective PPC search marketing campaign, if you do not have one currently. If you have a PPC campaign up and running already, you will know how to optimize your current campaign.

Bidding Strategy

No matter what the suggested price is given from a search engine, it is just for reference only and you have to know that it is often not very accurate. Here you will find out two bidding strategies that can help you to determine the best price per click.

First strategy to find the best bid is based on the lowest suggested price from a search engine. For example, if a search engine suggests that the suggested bidding price is from $0.40 to $1.50, then you can bid a little bit lower then the lowest suggested price, which can be either $0.3 or $0.25. If a search engine suggests $0.2, you can bid on $0.15 or even $0.1. Remember, you should not stop from here. After one to two days you need to see if you get any impressions or clicks from your ad, and raise your cost per click accordingly.

Another strategy is to find out the maximum cost per click. Assume that you are selling a $47 product and make a profit of $20. And let's assume that for every 100 people comes visiting your website, you get two sales. In other words, you are getting 2% conversion. The maximum cost per click will be your profit margin multiplies by your conversion rate. In this case your cost is $0.4. It means that you can only bid up to $0.4 in order to break-even. If you bid more than this number, you will have a loss.

Selecting Keywords

Most of the online marketers and marketing consultant will tell you that you need to select keywords that are closely related to your target market. While it is true, you can go one step further by using product name as keyword. Think about it: if a person is searching for a product name, it implies that this person has already known that he needs this product. He is ready to buy it. And if your ad shows to him that you have this product, it is no doubt that he will go to your site and probably buy from you. So even though the search volume of product name is rather low, the search quality is definitely higher than all other keywords.

And please avoid using some broader keywords, as the bidding price is usually high, yet the quality may not be good. Therefore, please do not bid on words like "books", but bid on words like "Asian vegetarian recipe" or something like that. It can lower your bidding cost and you get more target customers.

Article Source: http://EzineArticles.com/6795546

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