Search Engine Marketing refers to the process of increasing your visibility on search engine results page. Now there are two ways of doing this. First is the process of organic SEO where you organically increase your search engine ranking. You search engine optimize your advertising site for a set of keywords to get displayed at the top of organic rankings. The second method is the method of paying search engines to rank at the top. You say to search engines “ I am paying money for abc, xyz, pqr keywords. Rank me at the top”. This is called as PPC advertising or PPC SEM advertising.
How PPC Work?
Now we will get into the basic process of how PPC work. It is very obvious that the keywords, for which you want to get ranked, can also be chosen by any other company that belongs to your niche. Let’s say there are two shoe companies, A and B. They both want to be ranked at the top for keywords like “cowboy boots, designer shoes, etc.” Now what happens, when two or more advertisers want to get ranked at the top for same keywords. The solution to this problem is bidding. Advertisers bid for those keywords. If advertiser A is willing to pay higher than advertiser B for a particular keyword, then A will be ranked high. The process of bidding is extremely simple. The more you are willing to pay, the greater is the chance to get ranked at the top.
The amount that you pay to search engine when an internet user clicks on your ad (in result page) is called as cost per click. This is the maximum amount that you are willing to pay for a keyword. This amount is actually used only for the competition. The actual amount that you will be paying to search engine is determined by a simple process which will be discussed in the later part of this guide. Your actual CPC will depend on your quality score (in case of Google), click through rate, amount what other advertisers are willing to pay for that same keyword and a few other things.
You set the maximum amount in your advertising account (Adwords) that you are willing to pay for a keyword. Your ads will be ranked and displayed as long as you have sufficient amount in your account to pay for. Also there are few things to be kept in mind while bidding for certain keywords. It largely depends on the number of visitors that you expect to get after getting your desired rank. If you are convinced that you will have high rate of conversion “from visitors to customers”, then you should pay more to acquire a customer. Also just make sure that your landing page is able to convert your visitor into a customer. A car selling company can spend 5$ or maybe 10$ on car related keywords. Because, if only 1 out of every 50 visitors buys a car, then the deal is profitable. Find out more about the rankings and the position of ads in our Search Engine Marketing Guide.
The second thing that you need to keep in mind while bidding for various keywords is the actual worth of your visitors’ click. You should be able to squeeze in profit from each and every click.
Make search engines your market place with the ultimate guide to Search Engine Marketing. A detailed analytic approach along with a bunch of sureshot tips and tricks is provided in this guide.