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Pay Per Click : The Perils and Pitfalls of Pay Per Click Advertising

In this age of speed dialing, T1 lines and other forms of high-tech instant gratification, many webmasters find themselves tempted to engage in pay per click advertising. After all, if you've just designed a state-of-the-art website, there's nothing quite as gratifying as a steady stream of traffic right from the start. Webmasters with open wallets have found that pay per click can provide traffic within hours or even minutes of a website's launch.

Pay Per Click Pros

Before considering the perils and pitfalls of pay per click (PPC), it's worthwhile to remember that in some instances, pay per click is a good market strategy. A number of reputable SEO firms combine pay per click management with search engine optimization as a marketing method for improved search engine ranking. Pay per click can be an especially effective strategy for:

Significant Pay Per Click Drawbacks

Although there are valid reasons to engage in pay per click advertising campaigns, there are also enough drawbacks to give any webmaster pause.

Companies considering pay per click need to determine the primary purpose of their internet marketing campaign-whether it be immediate sales, building website value, or a combination of the two. If immediate sales is the goal and a worthwhile return on investment is being achieved, pay per click may be the strategy of choice-at least until good search engine positioning can be obtained.

Webmasters seeking to build a valuable web-based business should remember that whenever the money "spigot" for pay per click stops, so do the clicks. In contrast, clicks resulting from an investment in search engine optimization continue for months and possibly years to come.

Monitoring Pay Per Click ROI

Return on investment (ROI) is another key factor to monitor during the implementation of any pay per click marketing strategy. ROI can drop dramatically as market forces change. An increase in competition combined with rising costs-per-click and plummeting product prices, can quickly spell doom for a previously profitable ad campaign.

Computing ROI for pay per click can be a bit tricky. Since most sites receive "free" traffic resulting from SEO efforts, it's important to try and ferret out what percentage of sales result from pay per click, and what percentage result from other SEO efforts.

Choosing which sites and search terms to allocate advertising dollars to can also be somewhat daunting. Rapid changes in PPC charges can also be challenging to manage well. If your bid is #1 and your competitors lower their bids, you may be left paying a higher price than necessary to maintain top positioning. This is the webmaster's equivalent of throwing money down the drain. Unless you plan to sit by your computer watching PPC charges on an hourly basis, some type of pay per click management is, in my opinion, an absolute necessity.

In running a successful pay per click campaign, there are also questions about whether to try for top positioning or settle for some lesser spot, and which pay per click ads pull the best.

While I have learned "never to say never", I am not presently using pay per click for any of my websites. Though I have used it in the past and may resort tit again, my website is doing better than ever without it. Pay per click is just one more thing to manage, and, if not managed well, can become a financial drain in a hurry.

That doesn't mean, however, that it might not be right for your site. Do some testing, study it out, and consider the "cons" described in this article. In the words of an old adage, "if something is worth doing at all, it is worth doing well." This is especially true for things that cost money. My advice is to keep that thought firmly in mind whenever you open your webmaster wallet.

Copyright 2005 by Cari Haus

About the Author : Cari Haus has been successfully selling rustic log furniture and beds on the Internet since the late 1990's at http://www.logcabinrustics.com/.

 



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