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Taking A Look At Pay Per Click Formulas

If you want to have success using pay per click to market your online goods and services

, you've got to devise an effective use money as you go formula. Not every online marketer approaches this method in the same way, and each probably has developed their own unique method in order to make this strategy work for them. Regardless of your approach, there are several important secrets to this type of marketing that you should bear in mind when you decide to follow someone else's plan or to develop your own formula.

The biggest secret is that conversions (sales) are the most important aspect of your marketing campaign. Everybody loves to get lots and lots of clicks on their ads, but if those clicks aren't converting into sales, then you're simply wasting your time and money. That's why it is critical to test your advertisements, and full tracking and testing need to be the very foundation of any successful formula.

So how do you test conversions? One of the simplest ways is to develop numerous ads for each of your online promotions, rather than just one. A good mix might include three or four different ads, all for the same marketing effort. You could use those four different ads in bids on the same keywords, and then have each of those four ads point to a different page on your site. The content on each of the pages should be the same, even though the pages have a different URL. In this way, when developing your formula, you can decide which of these adverts generate the most sales.

For example, if you have four different adverts running and each ad sends 500 clicks to your site, you can use your Web tracking logs to determine which of those four ended up converting into the most sales. Say that #1 sent 500 clicks and from those you made 3 sales, and that #2 sent 500 clicks and from those you made 2 sales, and #3 sent 500 clicks and those generated 7 sales, while #4 logged 500 clicks but only one sale. Your conversion rates for those ads would be 0.6 percent, 0.4 percent, 1.4 percent, and 0.2 percent respectively. Clearly we can see that #4 out-performed all of your other ads combined. Therefore, when you put together your strategy you should include the advertising ngredient that delivers the most return on investment: in this case, it would be #4. Forget the others.


Of course there are other things to consider in developing a successful campaign such as keyword research and the actual cost-per-click compared to revenue generated by the traffic. But before you start with a wide shotgun approach to launching a campaign, take a step back a moment and develop a plan to test your conversion rates. You'll quickly find that this is one formula secret that can mean the difference between success and failure.

by: Bercle George
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