A Simple Way To Determine Your Pay Per Click Bid Max Amount

Pay per click advertising is a great way to market your business online

. An important part of this form of advertising is keywords. It not only has an impact on your success, but it may also impact how much you pay.

Once you have determined what keywords you want, you will then want to examine how much it will cost you. Different pay per click bidding operates in different ways, but the overall concept should be similar.

Different pay per click programs do offer tools to let you have an idea as to how much those keywords are going for. It may also help you save money. Having an idea on how much you should pay may end up preventing you from paying too much or bidding too high.

When choosing your ppc bid max amount, there are a number of important factors that you need to keep in mind.

1) What are you promoting?

2) Are your advertisements going to bring users to a specific product or the main page of your website?

If you are only promoting one product, you should only take into account that one product. If you are hoping that your customers will make multiple purchases, you may want to determine what your average sale amount is. This will make it easier for you determine how much you can afford to bid for while it remains profitable.

3) How much profit you would like to make?

For instance, if you are looking to make the largest profit, you may only want to pay ten cents for each of your ppc bidding. When those advertisements were clicked 30 times, you will be charged $3 total. Now say that 10 of those clicks result in an average sale of $20, you will have made a total of $200. Not bad for only spending three dollars in advertising!

If you can choose to increase your max bid, it may result in a smaller profit but your long-term sales result may improve due to exposure and referral.

The above mentioned formula is just one of the many ppc bid management methods that you can use to determine how much to pay for your pay per click bid. There are a number of other formulas that you can use but it will come with up the same or similar results.

Pay per click advertising may help you generate sales, but it will not do you any good if you cannot profit from those sales. That it is why it is important to estimate your profitability and keep that profitability in mind when choosing your max bid.

by: Adrian Ling

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