Pay Per Click Introduction - transcribed
Tuesday, September 26th, 2006Pay Per Click Introduction
Hi, I’m Sage Lewis the president of Sagerock.com. So, I wanted to give you a quick introduction to pay per click, these are the paid listings you see at the top and the side of all of the major search engines, usually in a highlighted color. You generally can’t miss them any more. I wanted to talk a little bit about these and why they might be effective for you, and why you might find them useful in your web marketing strategy. By their name, you only pay when somebody clicks on them. This is, in my opinion, a much better system, for you the advertiser, then say, a banner ad. You’ll hear something called CPM which stands for cost per thousand; M is the Roman numeral for thousand. The salespeople for banner ads will tell you it’s not about the click-throughs, it’s all about the branding, and I for the most part don’t believe it. When it comes right down to it, you want to know what a lead costs you and how many leads you are going to get. A banner ad really just isn’t about that. Pay per click is, you only pay when somebody comes to your web site. There might be thousands and thousands of impressions on your pay per click listing but maybe a hundred people click on it. That can be okay, especially if you are bidding on a general phrase but have a really great title and description that pre-qualify people before they click on it. That way you are only paying when a qualified person comes to your web site. Another great thing about pay per click is you only come up for phrases you want to come up for. You don’t have to come up for anything you don’t want to come up for. It gives you a tremendous amount of control, then to top it off you can send them to exactly the right page you want to send them to. Sometimes we call that a landing page and these pages can be custom made for your pay per click campaign. These pages can be tested to determine how to best control your conversion rate. That is really where the metric comes into play, so a lot of times people will say they are going to get rid of a particular phrase because there isn’t a high click through rate. Sometimes that can be legitimate, but sometimes not. It’s not so concerning that only a small percentage of the number of people who saw your ad clicked on it. It may be that your ad is bad, but it could also just mean that you are pre-qualifying well. So, that number really isn’t important then. Who cares? You are only paying for the people who clicked on your ad, so if it’s only really qualified people who are clicking on your ad then you are okay. That’s where the conversion numbers become very interesting, and where you need to tune into them. So, then the person moves into your site and you need to determine what it is you want that person to do. Do you want them to fill out a form? Sign up for a newsletter? Sign up for free information? Then you can measure that very specifically. You can say, this phrase on this engine gave me this number of responses and cost me this much. You just can not find a better metric or a better way of measuring. Pay per click is super, and right now it is super hot. A lot of people are doing it; it’s getting a lot of press these days because you just aren’t going to find a better conversion rate out there. Other people may say that people don’t click on pay per click ads. We know that in Google, approximately thirty percent of people click on the paid ads. So, yeah, you are missing on seventy percent there, but you are only paying for the people who click on it. So, it does not hurt to be there. If you haven’t tried pay per click, it is highly measurable, highly controlled, you only pay for the people who come to your site. You have a very strict budget too, once you have reached your budget for the day or the month, you stop paying. You don’t have to worry about getting a huge bill at the end of the month. If you have given it some thought, if you have been considering it, try it. There’s no entry minimum. You can set up an account by yourself. Overture, which used to be Yahoo, had a twenty dollar minimum; they don’t have that any more. I hope that helps, if you have any more questions feel free to call me at 330-379-9000, or email me directly at sage@sagerock.com. Thank you so much for listening, check out our website there is a lot of great information there. Have a great day.