Internet Marketing Guide
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1. Viral traffic generators
2. Affiliated traffic
3. Application to relevant newsgroups and chat rooms
4. Advertising in e-zines
5. Syndicating content
6. Linking strategies
7. Online classified Adverts
8. Opt-in e-mail campaigns
9. Microsite matrices
10. Pay per click and banner campaigns


10 - Pay Per Click & Banner Campaigns

Pay per click advertising is a way of bringing targeted visitors to your website. You write your ad text and choose the keywords that you think will make members of your target market want to contact you. The adverts are displayed on the at the side of the search engine results page when keywords are used as part of a search. You set a daily budget that you are prepared to spend on the keywords, the money is divided between the keywords, and the cost-per-click pricing means you only pay when people click on your ad. See https://adwords.google.co.uk/select/steps.html for details.

Pay per click search engines such as Google work best when you can successfully calculate your advertising budget beforehand. This requires knowledge of the following 4 figures:

To find your unique visitor figure, you will need to study your web site statistics/tracking/logging software.

Calculate the value of a visitor to your website

Conversion rate i.e. how many unique visitors it takes to close one sale:

Unique visitors divided by the total number of sales = conversion rate

Net profit per sale i.e. how much profit results from a single sale

Gross revenue minus total expenses divided by the total number of sales = net profit per sale

Visitor worth i.e. how much a single visitor to the site is worth

Net profit per sale divided by the conversion rate = visitor worth

Identify your target market, create a profile of them, then build a list of keywords that they may use to find you by:

Once you have decided on the keywords and key phrases that your best potential customers are typing into search engines, you can start bidding on/allocating money to these words/phrases in the pay per click scheme, using the 'visitor worth' figure to guide you. e.g. If a single visitor to your site is only worth 20p, you can afford to bid 20p per visitor in pay-per-click search engines without losing money. Bidding less than this would generate a profit. Say you had decided that it took 110 visitors to close a sale, your profits would be e.g.

20p Profit per visitor - 7p advertising costs per visitor x 110 (visitors to close a a sale
= a total net profit per sale of
£14.30

Different keywords or phrases cost different amounts with different pay-per-click search engines. To compare bid amounts for various cost-per-click schemes, go to http://www.compareyourclicks.com

It may better to bid for the cheaper, neglected keywords rather than getting into an expensive bidding war in the beginning.

When choosing which of the major pay-per-click search engines provide the best results, Overture and Google AdWords both have a large reach on the Internet.

Overture offers a number of different services including:

For details go to http://searchmarketing.yahoo.com/srch/index.php

Google AdWords unlike Overture, allows you to create multiple ads for each keyword you use so that you can find out which keyword provides the best return on investment. Also Google's rating system takes into account an ad's popularity as well as it's bid amount so the more relevant your advert, the less it costs you. For these reasons, Google AdWords may be the best place to start you pay-per-click advertising. Find out more by going to https://adwords.google.co.uk/select/steps.html

Banner Campaigns

There are two main types of banner advertising campaigns:

Pay-per-impression banner campaigns

This is the most common but most high risk methods because you are paying for the banner to be displayed (impressions) and not for click through or customers.

Pay-per-click banner campaigns

Obviously this has less risk as it is performance-based i.e. you only pay for visitors who click through your banner. This means that you can make the design and the copy of the banner far more tageted to attract the ideal type of visitor.

A banner exchange or network bring websites and banner advertisers together. They they are a 3rd party service provider who can arrange for your banner to be displayed on thousands of websites at no cost on the condition that you agree to display their rotating banners on your website. Although these exchanges may not be particularly profitable, they can be a good way of testing the banner advertisement designs to look for the best response.

For further information...or a quote...
contact us now on 0845 4501889 or click here to email us

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