Pay-per-click or ppc advertising can be costly and grossly ineffective. When going ppc you need to really watch costs, conversion and ad effectiveness. While we are new to the ppc arena we do know that mistakes can and will cost you.
First off always go with Google Adwords and Yahoo!, MSN is ineffective and you will get very little traffic from them. By far Google has been our best performing ppc platform, obviously with 60-70% search market share.
Choose your keywords carefully, general terms do not and will not convert. We run an annuity website, but using the term “annuity” is too broad, costly and competitive of a keyword to be effective. In other words, you will spend a lot of money for low to no results. But, the keyword annuity comparison, while competitive, is a better fit with lower competition and low cost per click.
Google offers a keyword tool to help you pick the keywords best for your website. Pay close attention to advertiser competition for the keywords, more competition means higher costs for you. We concentrate on lower cost keywords that fit our sites best. This method keeps our costs lower and conversions higher. We also offset our costs with Google Adsense so those who do not buy will hopefully click off our site and we can recoup a portion or more of our cost per click.
Ad variations are also important. Create several, and we mean several, different ads with your focus keywords in the ad. If the ad contains the keyword that you are bidding for then you may get a higher quality rating which can mean lower cost per click expense for you. Ad quality is extremely useful for ppc advertising and pay close attention to it.
Cost control is extremely important when using ppc advertising. Since you have greater expense exposure than traditional banner advertising, which is generally fixed costs, you have to watch costs. We refuse to pay more than $.50 a click, therefore we set out maximum bid for $.50 and daily budget at 20-$30 a day. From there we watch conversions and which ads generate more clicks.
Do not assume you will get business from ppc, it’s like a website, just because you have it that doesn’t mean that it will work or generate money for you. Log in to your Adwords account at least daily to check your stats, make adjustments and hopefully you will have conversions.
Cheap keywords and enticing ads will create sales for you. One last thing, never bid the same amount for content advertising as you would for search engine advertising. With click fraud and mfa sites abundant, you will find that content ads are next to worthless, IMHO.
If you are doing ppc arbitrage be very careful and keep your bids low and content keywords high to maximize returns. A 10-20% rate of return on arbitrage is EXTREMELY good.

