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There are many benefits to Pay Per Click advertising, making it an effective way of promoting a business "online". Some of them are listed below: Get launched immediately. PPC advertisements are implemented very quickly - they can go 'online' within an hour after winning the bid and paying for it. Obtain specific, pre-qualified, and quality traffic. PPC provides you with a quality or a well-targeted traffic. Visitors are narrowed down into 'qualified' people who are actually looking for specific products and/or services that you offer - those who are more likely to become a 'lead' (a convert) and complete a transaction (either by buying your product or subscribing to the service that you are offering. Widen your reach. PPC advertising provides additional traffic to your site, aside from the natural or "organic" search engines. Track your investment. PPC advertising makes use of a tracking system that will determine exactly who comes to the website and what they do once they arrive - the length of their stay on the site and the number of pages (including the actual pages) that they view. These are valuable tools in determining statistics such as return on investment (ROI), acquisition cost-per-visitor, and conversion rates (the percentage of visitors who are converted into customers or leads). Below are some important things to consider when planning on a pay per click campaign: 1. Know your product. Take an inventory of the product and/or services that you have to offer (before anything else). 2. Stay within the budget. Determine your daily or monthly budget; and stay with it. This means keeping your budget in mind, avoiding bidding wars if possible. 3. Bid just right. Know how to bid right - a bid that is too high can exhaust all of your money, while a bid that is too low can make you lose that spot. 4. Watch the bottom line. Measure your profit margin against your spending or expenses. Know when to stop and terminate your PPC program - if you spend more on advertising but have little or no sales at all. 5. Find the right keywords. Decide which keyword phrases to opt and bid for. Do some keyword research, either by actually looking at existing search terms or with the use of online keyword suggestion tools, to know which terms are mostly used when searching for items that are related to your business. Focus on specific keywords, not on general ones. 6. Write effective ads. A good PPC ad is that which can persuade and move a searcher. There are several approaches to this: · Discount offers · Testimonials · Celebrity/famous endorsers · Money-back guarantees · Free trials or sample offers · Freebies · Reverse psychology · Major benefits ("Lose weight") · Direct instructions ("Click here") 7. Maintain a professional-looking site. Your web content should be regularly updated and checked for spelling and grammatical errors. There should be no broken links or images. The website should be simple - designed in such a way that it will be easy for visitors to navigate and load. Include contact details to create a good impression among potential customers. The downside is that pay-per-click is essentially a bidding war. A higher bid than yours will lower your position on search engine results. This means that you will have to raise your bid to regain your position - which can obviously become quite expensive, especially if you are bidding on a popular keyword. In order to determine if pay-per-click is a cost effective form of marketing for your business, you must do some computing to figure out how much each visitor to your site is worth. You can compute this value by dividing the profit you make on your website over a given period of time by the total number of visitors for that same time period. For example, if your site made $5,000 in profits and there were 2,5000 hits, each visitor would be theoretically worth 50 cents. The basic formula is profits divided by visitors. The figure of 50 cents per visitor is the point at which your business breaks even. The idea, of course, is to show a profit, not to merely cover your costs. Therefore, you are aiming at a figure less than 50 cents per click. Be aware that the most popular keywords often cost considerably more than 50 cents a click. The only way around this is to bid less for these phrases or you will be paying too much for each individual hit. The key to success is to learn everything you can about search engine keyword research. The good news is there isn't a limit to the amount of keywords you can add to your bid because additional keywords do not add additional cost. This translates into a lot less hassle for you because there is no need to optimize your site to index a particular set of keywords. Obviously, some keywords are much more effective than others are, but they will not cost you anything except time to set-up your account in your pay-per-click bid. Of the popular search engines that offer pay-per-click, one called Overture provides an online tool that will give you the data on how often particular keywords are entered into their search engine. They also offer suggestions for keywords after you enter a description of your site. In pay-per-click, this written description is crucial. You must understand that the object of your description is not to generally attract visitors, but to be as specific as possible so that only those visitors who are likely to buy your service or product go to your site. You must use expert marketing copy to guarantee that your description is both precise and enticing to attract the most ideal candidates to your site. This description is your most powerful tool to insure that your bid is profitable. Another essential element of pay-per-click advertising is that you constantly monitor your bid. It is very important that you bear in mind that the results of the top search engines providing pay-per-click advertising usually appear on other popular search engines. Because of this, the competition for top ranking is intense, and very often you will find that the bidding price balloons too high for pay-per-click to yield a profit. If this happens, it is advisable to withdraw your bid on that particular keyword and try another one. Remember: when you pay too much per click to make a profit, you are in essence losing the bidding war. Since losing is not acceptable, you must have a plan in place to closely track the effectiveness of your keyword. It is advisable to monitor your keywords on at least a monthly basis. Done properly, PPC advertising can be an effective marketing tool that will maximize the return on your investment. 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