PPC Basics
Pay Per Click (PPC) advertising allows advertisers to connect with internet users to promote their products and services by displaying ads on search sites and other partner networks. As the name suggests, you only pay when someone clicks on one of your ads. You're also are able to set a maximum CPC (Cost Per Click) as well as a daily budget so that they'll never spend more than intended.
So how much should you pay? Well it really is entirely up to you how much you choose to pay. All else being equal, the higher you bid per click the higher your ads get shown in the search results. Obviously the thing to bear in mind here is that you don't set a maximum CPC higher than what you think it's worth. For example if your website sells a product for £5, it is crazy to bid £5 for a click because even with a conversion rate of 100% you'll still be making a loss!
Conversely if you end up bidding too low, your ads may never get shown at all and so the click volumes will be heavily jeopardised. PPC costs also very much depend on the market in which you are operating. For example buying clicks for a freebies website is going to be considerably cheaper than the cost of keywords based around loans. Don't forget that PPC auctions are very dynamic and does fluctuate significantly even at an hourly level.
If all this is sounding way too complicated then please let us help. Nutpog can develop an effective bidding strategy using sensible CPCs so that an optimum is reached between the cost of clicks and the number of relevant clicks you receive. Part of this process involves looking at competitor ads and seeing how to appear in a superior position without having to pay a fortune for clicks!
