Making Pay-Per-Click Pay

MAKING PAY-PER-CLICK PAY
790 words – Less than 4 minutes to read

For large and small business alike, pay-per-click advertising can be a nimble marketing instrument with high ROI. It can also be a huge waste of money. A few tricks make all the difference. This week, we’re talking to Mark Shead, President of Xeric Corporation about capitalizing on pay-per-click’s flexibility, feedback and focus.

First, let’s have an overview of how Pay-Per-Click (PPC) ads work. PPCs are advertisements that are tied to certain keywords and phrases. For instance, a company that makes a seasickness patch might display a banner ad above a blogger’s tirade about a horrible cruise. Many PPCs are linked to Internet searches. If you’ve ever seen “sponsored links” at the top of search engine results, you’ve seen a PPC. And if you’ve ever clicked on one of those links, you just made that search engine some money, because (you guessed it), the advertiser pays per click. The order of appearance is determined by auction, where the highest bidder would appear first, followed by the second, and so on (but remember, they only pay that amount when and if the ad is clicked on.)

FLEXIBILITY
Pay-per-click sounds intimidating to many people who haven’t investigated it, so they’re often surprised to find that PPC is remarkably responsive and a great bargain. In the realm of marketing, there are sculptures skillfully chiseled in stone, like your brand identity. There are masterpiece paintings, that aren’t quite as hardy as a sculpture, but also take time to craft: an ad campaign, perhaps. Then there are your 2 year-old’s scribbles, created in seconds, prolific in number, and at best, destined for a few weeks on the fridge. PPC, then, is the refrigerator scribble of the marketing world.

There are several reasons it’s so flexible. First, it’s cheap. I mean, really, really cheap. You can test an ad on the web for a few days for, say, between $1 and $5 per day, then scrap it or change it, and throw it back on the “cyber-fridge door” to see how the new version does.

FEEDBACK
How do you decide whether or not to keep a certain “ad-scribble”? Feedback, of course. I’m not talking about the “No, really, I did like your ad, honey,” comments that your supportive spouse gives you. I’m talking analytics: hard data, numbers, statistics, facts and trends. OK, breathe. You don’t have to do this part. The nice techies at your search engine company will have an analytics package that will tell you things like how many people are clicking on your ad, how many clickers reach your predetermined goal (usually a sale, but perhaps the completion of a form or subscription to a newsletter). This allows you to test keywords and phrases to find the ones that maximize profits for you.

Interestingly enough, Mark points out that you don’t have to understand the trends, just use them. “The Analytics find patterns you can’t explain, but can use,” he says. You might find out that one phrase “crimson feather boas” works better than another, “red boas.” You may never know about all the snake lovers who clicked on your site with dreams of red-spotted constrictors, only to find your precious plumes, but it doesn’t matter, because now you know which phrase connects you to your customers.

FOCUS
You know that I’m a great proponent of targeting your audience, but PPC takes this to new levels. When you think keywords, Mark recommends brainstorming with the thoughts “If I were looking for this product, how would I describe it?” and “If I had a problem, and I didn’t know that this product was the solution, what would I search for?” Be specific, because the more you narrow your keyword phrases, the more on target you are (and therefore a higher sales to click ratio).

Focus on narrow slivers of internet users, but choose several of those slivers. For instance, if you sell super glue, you might want to attach an ad to the phrases “super glue” “adhesive” and “Cyanoacrylate.” But Mark points out that you also might want an ad with the key words “teacup” “broken” and “fix.” And for the CSI lovers out there, “super glue fuming,” “criminal investigation” and “latent fingerprints.”

You can focus PPC ads by geography, too, so your concert is only advertised to computers operating in your region, your grocery store only to your city, and your babysitting service to your subdivision. And you can limit when the ads run, so your nightclub ad only shows up on the first Thursday and Friday of each month (after people just got paid and are planning their weekend) to the hippest neighborhoods in the city. Talk about targeting!

So get out there and stick something on Google’s refrigerator door!

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