How to not waste money on pay per click advertising

How to not waste money on pay per click advertising:

Pay Per click advertising are the advertisements that pop up on your screen, or on the sides of web pages, and sides of search engines when you are searching for a specific topic or product. Companies pay to have their business advertised so as to bring new and constant traffic to their web sites. You as a company looking into pay per click advertising, have two ways you can budget your money.

The first way is to decide how much you are willing to pay per click on your advertisement. You do not pay the search engine or web page that is sponsoring your advertisement unless your site is clicked on. The kicker is that the more you pay the higher in rank your advertisements will be to the search engine in comparison to your competitors. For instance if you are willing to pay ten cents per click, when you have a competitor who is willing to pay a dollar per click, well then it's not going to be hard for the search engine company to decide who's ad to place up first.

You do not want to bid high though for your clicks just so you can pop up first. You have to calculate the amount of traffic flow you expect to get against the amount of purchase you will average out of the traffic flow. If you expect to get five thousand hits in a day, and two hundred purchase out of those five thousand, then how much can you afford to pay the search engine since you paid for all five thousand clicks, but profited only from two hundred of them. That decision will depend upon your merchandise and the price of it. If you are averaging ten dollars per sale then you are going to want to bid a lot lower for your pay per click advertising then you will if you are averaging one hundred dollars per each of your two hundred sales. Be sure to do the math before bidding on your pay per click advertising, because even though you may get a top spot you may end up losing a lot of money if your revenue is not greater than your bid.

Through the search engine you may also set up a daily spending limit. Thus if your paying a dollar per click but you can't afford more than two thousand dollars a day (don't feel bad, a lot of people can't) then you can set that spending limit up with the search engine you choose to use so that whether you get two thousand hits first thing in the morning or all throughout the day, you are not spending more than you have to spend.

Once you have set up your pay per click account, done the math, and decided how much you are willing and can pay per click, then you have to decide where you are going to send your customers. Many people made the mistake at first of sending their customers straight to their home page. This would make sense logically because wouldn't you rather your visitors came in through the front door rather than climbed through the kitchen window? Most people would. However in the case of internet pay per click advertising, your visitor may not be interested in you at all, but rather in your kitchen. So if they hear you have a really cool kitchen but you first make them knock on the front door, their going to take one look inside, see that their going to have to search for the kitchen, and turn around and walk right back out because you're wasting their time. Make sense? Pay per click advertising is specific to exactly the product or information a person is looking for, although you may sell many products or have much information to offer, give the person what their looking for first before you throw the rest at them. In this way you will be saving a lot of money as you will not lose as many customers who click on your advertisement because they think you are wasting their time.

The second way to not waste money is to try to establish a long term relationship with these potential customers. Make it important to them; give value enough to your product that they are going to want to know about future products or promotions. In this way you can collect email addresses and personal information that while it may not help you in the short term will most certainly help you in the long run through long term relationship sales.

Know your budget, make a bid, set your limit, give customers exactly what they want, and then build a long term relationship and your should find you are saving rather than wasting your funds.