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Pay Per Click Pricing: What Is Reasonable?

Wondering about the current PPC and PPC Management price ranges and how much to allot for your marketing efforts? You have come to the right page. This page will try to explain everything there is to know about PPC and what you can expect from the PPC price you have to pay for.

What is PPC anyway? PPC stands for Pay Per Click Advertising. A PPC price is simply the fee you need to pay to benefit from pay per click advertising from a web marketing company.

So what does "pay per click" mean then? PPC advertising is a method of advertising wherein advertisers only pay each time their ad is clicked on, and eventually leads a visitor into their website.

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PPC Search Engine Advertising

PPC is closely linked with search engines. Unlike banners which do not seem to produce positive results, PPC search engine listings are very effective. How does this work? Generally, advertisers usually just choose a search term for which you want to get listed for. After which, once an online user types in the targeted keywords in the search engine page, your ad will displayed in the resulting page, within the ads area.

For example, if your business is related to toddler beds, you would choose "toddler beds" as your keyword phrase so that you will be shown in the search results page each time someone searches for the phrase "toddler beds." This is exactly the service that you should expect to have set up for you from an agency that offers PPC pricing and management.

PPC is regarded as one of the most effective online marketing strategies today. It has been proven through web research that the PPC price you invest is worth every dime. PPC can effectively attract new types of customers which are potentially interested in your products or services. To determine how exactly it is able to do so, let us look into the various elements of a PPC ad.

The Elements of a PPC Ad

A PPC ad allows your product or services to be showcased to potential customers all over the web. Generally, it includes a headline, a brief description of your business and, of course, a link to your site or your company profile. Your PPC ad must be able to accurately create a picture of what your business is all about and must be attractive enough to encourage customers to click through it.

A great PPC ad can bring wonderful results to your marketing campaign. Thus, it is very important that you entrust the entire project into an individual or a company who can effectively give you a good PPC campaign. Paying a certain PPC price in exchange of these services will surely be worth every dime spent. You see, PPC is not simply about coming up with a marketing project. It is also about tracking the success of your PPC ad, modifying it a bit, and constantly refining. With the PPC price you pay, you should also expect the web marketing company to come up with the most effective ad which will yield the best results. Also, PPC campaigns can involve multiple ads for different product or service categories. If geographical location matters in your niche, it can also be a good idea to specify your business location in order to improve the chances of attracting your target customers. Depending on your needs, you can come up with a good PPC marketing plan with the help of a good web marketing company.

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PPC Rates for Keywords

You should know that PPC advertising systems work much like auctions. You need to place a bid on the search terms that you want to appear for. Your ad will then be displayed on the sponsored results by the search engine depending on your bid. The higher your bid as compared to the others who you have the same key terms (the higher the PPC price you pay, in other words), the higher your rank will be.

If your bid happens to be the highest of them all, you will get listed in the top most position. If your bid is the third highest, you will be in the third position, and so on. Some programs, such as in Google AdWords, do not only consider your bid. Instead, it also considers the amount of click throughs generated by your advertisement (and the total in associate revenue). If your advertisement generates the highest revenue, you will get a top rank in Google without consideration of the bid that you placed for your key terms.

The Real Cost of Pay per Click

Because of the effectiveness of PPC search engine advertising, keywords cost have risen significantly (about 43% from 2004 to 2005) and continue to rise exponentially each year. The most common keywords and key phrases are expected to be more expensive. So, what you need to look for is a search term which is just the right price, but will garner you enough target customers for a promising return of investment.

There are PPC advertising programs that you can choose from. The most popular of these programs are Google Adwords and Yahoo! Overture. AdWords allow ads to be displayed on major search engines such as Google and AOL, along with a few other engines and a big network of sites that display AdSense advertisements. On the other hand, Overture allows display of ads on MSN and Yahoo! Yahoo has also come up with a program similar to Adsense which allowing other websites to show your ads through. PPC prices in Overture and Adwords are very comparable.

In major search engines such as Yahoo!, Google or MSN, you can expect their pay per click costs to start at about $0.05. With top keywords, you can expect this to go as high as $30 per click! Top advertisers in more lucrative markets can even go to the extent of paying $150 for every clickthrough.

How to Do PPC Right

Keep in mind, however, that to maximize rate of investment, you do not only need to make sure that you join a reliable PPC program. You also have to see to it that your key terms are conducive for the right return of investment. There are three factors which affect the chances for your ad to be shown to the most qualified customers: location, category and the PPC price you pay per click.

First, you need to narrow down the best audience who will benefit from your products or services. If for example, you run a local salon or a restaurant, your ad will surely be more successful if you include your city, town or area into your search string. It is very important that your ad be placed in the most relevant categories for it to appear in the proper searches. You will need to display your ads in sites where people will most likely do local searches. This way, you will only focus your efforts on a smaller audience, minimize irrelevant clicks and receive better chances of positive responses.

On the other hand, if your products and services are available widely, you can expand your reach a little to the entire state, to nearby states or even nationwide. Naturally, a wider scope will need a bigger PPC price to pay. However, at this rate your business is most likely capable of risking the PPC price you will pay. Also, it is equally important that you settle with a reasonable price per click for a campaign to be successful. You do not want your PPC price to be higher than your ROI.

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It can be quite difficult to assess PPC price vis-a-vis ROI. You will need to revise your bid very often depending on your goals and budget. For PPC to be successful, you will need to exert effort on this aspect. However, if you do not have as much time to go over your PPC campaign, it is always a good idea to ask others who can do this for you.

Asking for the help of third party Internet marketing companies to run your PPC campaign is always a good idea. This way, you do not risk paying too much on PPC price schemes, but you maximize the benefits you can get out of PPC ads.

WebpageFX has been providing reliable and affordable PPC management services to companies for many years. Here's a testimonial from just one of our satisfied customers:

If you're interested in a custom quote, contact us today or view our PPC management pricing to get started. We can't wait to hear from you!

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