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The key to successful Pay Per Click advertising is knowing your objective targets and controlling your costs.
Unlike traditional advertising where you pay for an advert to appear regardless of the response, with PPC you only pay an agreed amount any time a person takes action, i.e. clicks on the ad and visits the destination web site.
I've used, and still use PPC to promote affiliate products but you have to watch your campaigns closely. For example if 1 out of every 150 visitors to a site buys the affiliate product and it pays out a commission to me of $25, then I can afford to pay up to $0.16 cents and still break even. If I pay a maximum of around $0.11 per click, then I should have a nice profit.
Keep in mind that with Pay Per Click advertising such as Google Adwords you can usually get less expensive traffic through the Content Network - although this may be less targeted as people were merely browsing a site rather than specifically searching at a search engine for a keyword phrase.
Don't use only Google. It's is a good idea to also test your campaigns through Yahoo and MSN's PPC advertising networks to determine which works best for your niche. I don't really recommend using any other networks than these Big 3.
I hope this helps.
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