Bidding Strategies (PPC)

PPC campaign stands for Pay Per Click. Bidding for pay per click depends hugely on how many clicks leads to the final sale of a product. For example if it takes 100 clicks to get one sale then this is how you will calculate your average. You have to relate the profit earned and the cost of each click. The money you spend on advertisements that lead people towards your website should compensate with the sale of the product and the profit earned. Bidding depends on the total budget for a particular project and the percentage of that allowed for marketing strategies and advertisements. Let us understand this aspect with an example, if a website owner decides to allot 20% of the entire revenue on pay per click advertisements then he can spare almost $12 per sale. If there are around 100 visitors who are directed to the website then this totals to a maximum of 12 cent per keyword.

Different search engines have different systems and so the bidding strategies differ accordingly. Still there are certain rules that can be followed in bidding strategies to get the best results. Remember that bidding for the top most position is the most expensive of all. Moreover, statistics and research have shown that internet users click on the first advertisement without reading it completely. So in such a case even by paying hefty amount you will not achieve the desired result.

The gap between the 2nd and the 3rd bid is known as the bid gap. Now it is here that a prospective bidder should target. 3rd bid will be comparatively much lesser and visibly noticeable for surfers. In this scenario you can achieve both the aims; one, you remain well within the budget and two, 3rd position is the most optimum position in search engines.

Bidding rate depends on the performance of the search engine. Keep changing your bid depending on this factor. Keep a vigilant eye on your keywords and their performance, if they are not doing well then there is no need to hang on to them. User many also use cheaper keywords like plural form of the word or one with a common spelling mistake to bring down your bid rate immensely. Negative keywords also sometimes help to enhance the CTR.

Just bid at a comfortable rate, one that is in your budget depending on the estimated profit you might earn from it. Also, remember to keep changing the bid depending on the performance of your advertisement. It is important to keep adjusting to get maximum benefit.

Bidding needs good calculation and overall vigilance. Also, some tricks to balance your keywords help to squeeze out maximum benefit. This entire process requires expertise and fair knowledge of how the industry works. A few bids up on your sleeves and you will know the nuances of bidding.