Pay Per Click advertising works great as long as you know what you are doing. It allows you to measure your advertising spend versus sales revenue dollar for dollar so you can make sure you profit (or know when to quit). Its even possible to know within 1 week of launching your campaign, if it is profitable or not, and allow you to make decisions quickly to minimize any losses you may incur on an unsuccessful campaign. Success also depends greatly on the type of software you have, its target market as well as the competitiveness of the market.
Pay per click is a great for getting instant traffic and sales, but can also spell disaster if you don’t be careful. Pay Per Click advertising refers to services such as Google Adwords (Those ads that appear on the right side of google’s search results and on websites with google adsense), Yahoo Search Marketing etc.
For now we focus on Google Adwords. Once you are successful here, its easy to duplicate the campaign on other networks.
First off, if you already have some sales data, you want to try and determine what you current conversion rate is, from user visit to download to purchase. You need this to determine what you can afford to pay per click to still be profitable.
Some basic math, but it must be said…
Lets say you get 200 visits a day, 100 downloads a day and 5% of downloader’s purchase the software. That’s about 150 sales a month. Your software costs $67. That’s $10 050pm.
You then work out how many visits converted into sales. 200 visits a day * 30 days = 6000 visits a month. 150 sales a month * 100 / 6000 visits a month = 2.5% conversion rate of visits into sales.
So, lets say you want to make a 50% GM on your software and spend only $5025 per month on advertising to make total sales of $10050pm…
You need to divide the advertising spend you have by the number of visits you currently receive per month which will show you the cost per click you can pay to reach your target. In this case $5025 / 6000 visits = $0.8375 per click. This can be a reasonable amount in some niches and impossible in other more competitive niches.
If you don’t have this sales data yet, you can use Adwords to send traffic and start tracking your conversion rate to obtain the data you need.
You can sign up free for google adwords here. Then proceed to (https://www.google.com/adsense/adsense-resources ). This will allow you to go through the free tutorials and training that Google themselves provide. This is almost enough to start a successful campaign. After all, Google wants you succeed and continue spending with them.
Go ahead and sign up to start familiarizing yourself with the service.
Google wants your ads to be relevant. Google’s business is providing quality search results for its users. It does not want irrelevant ads cluttering its search results. They have therefore introduced the Quality Score which scores your ad, keywords you bid on, and the page your ad links to, based on relevance to each other.
Simply put; If you bid on the “Video Conversion Software” keyword phrase, then your ad should include this phrase in its title and description and the page that it points to should be information about this exact topic (at least 500 words of text).
This will generally get you a good quality score. Sounds simple? You’d be surprised how many people get it wrong!
A good quality score allows your ad to rank higher in the search results while maintaining a low cost per click. Its sometimes possible to rank better then a competitor at a 5th of the cost per click, simply because his ad and landing page text may be less relevant to the chosen keywords, then your ad. This can be the difference between profitability and failure.
Another way Google will influence your quality score is the click through rate that you get in relation to the number of times your ad appears in a search result for users (called impressions). The assumption is that if nobody is clicking on your ad, then its not relevant to what the user is searching for. Keeping above 2.0% click through rate will generally keep your quality score high.
Here is a great free report showing you exactly how to run a successful PPC campaign. This has been highly recommended by many of the top internet marketing “guru’s”.
http://www.creativedigitalmedia.com/dominate/frank/
By the way, these guys run a very successful PPC management company, and are experts in this topic, so if you are thinking about outsourcing your pay per click marketing, give them a shout. They will review your software and its market and won’t take on any projects they don’t think will be successful, so it may be a good idea running your software past them as a way to test its viability in this advertising channel.
Next we are will be looking at some PPC competitive analysis.
Firstly, sign up for Hexatrack. A free membership is available that will allow you to track 4 groups of 10 keywords for free, before you need to register. This can be more then enough for a single piece of software. If you need to, they offer a paid membership which allows you unlimited access.
I recommend going through all their tutorials and help to maximize the value you receive from the service.
Here is a short hexatrack walkthrough to show you what valuable information you can get from your competitors keywords. COMING SOON
To reiterate, PPC is competitive, but viable, sometimes hugely successful and other times disastrous. Fortunately, in almost any market, there is a path to take to a successful campaign. If you are like me and have the budget, id recommend leaving it to professionals who have been doing this for years and have proven track records.
For top notch PPC management id recommend (http://www.creativedigitalmedia.com/ ). The creators of that great free report I mentioned earlier on.
Further more, I fully recommend you searching Google for more PPC help. There is tons of great free information out there for you.
If you really want to DIY, check out these training ebooks:
Adwords Profits
Google Magic Adwords Formula
Next: Step 10: Affiliate Marketing