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PPC & Advertising Information |
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Secret Reasons Why Some Businesses Can Afford to Bid Ridiculous, Amounts On Pay-Per-Click Keywords
The other day I was talking to one of my consulting clients on the phone about the return on investment from his Google Adwords campaign. And, he asked me a question that I get several times a week from clients and other online marketers. His question was? "Eric, how on earth can my competitors afford to bid over $4 per click for the number one position on the top keywords for my niche?! I can't make a profit on those keywords at just $2.00 per click!" His concern is a common one among businesses that use pay-per-click advertising to generate traffic. It seems that the top positions in most competitive markets are reserved for businesses with more money than sense. I explained to him that short term his best strategy is to just cast a broader net with his keywords by expanding his keyword list to include thousands of less competitive, yet still targeted phrases, by using tools like WordTracker or Ad Word Analyzer. However, to remain competitive long term he needs to address the real reason that his competition can afford to bid $4 per click and still make a profit? There are only 4 reasons that another business can bid higher than you on pay-per-click ads. For example: Site "A" is making a profit of $10 per sale and converts 1 out of every 100 visitors. This site can afford to bid only $0.10 per click to just break even. Site "B" is making a profit of $100 per sale. If they also convert 1 out of 100 visitors, then this site can afford to bid $1.00 per click to break even. (Better yet, they can bid $0.50 per click and earn a 100% return on investment!) You can get a pretty good idea who has the best converting website in any given market by watching the Google Adwords listings in that particular keyword niche for a few weeks. Unless they are one of those "more dollars than brains" marketers, the sites that constantly stay near the top long term are the ones that are generating the highest value per visitor. The only way to compete long term on the super expensive keywords is to maintain a continuous focus on improving both conversion rates and average profit per sale. Want to improve your conversion rates? Eric Graham is the CEO of several successful online companies. Internationally recognized as a top authority on eCommerce, Website Conversion & Internet Marketing, he's an in-demand speaker & consultant. Visit http://www.web-site-evaluations.com today for an in-depth evaluation to boost YOUR websites conversion rate! Get expert tips, advice, news and commentary on improving conversion rates, split testing, web usability, copywriting, internet marketing and more. Just visit Eric's popular Blog:http://www.conversiondoctor.com/conversion-blog/
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(2025) DesignRush Is AI making PPC marketers better or worse? 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(2025) DesignRush PMax for Hotels: Insights To Control and Improve PPC Performance Hotel News Resource SEM Company; Toronto PPC Experts | PPC Management, Search Agency Search Engine People Google Search ad spend climbs 10% YoY, despite AI disruptions: report Search Engine Land Maximizing Google’s Property Promotion Ads for Hotel Campaigns - By Jeremy Razook Hotel News Resource Top 10 PPC expert columns of 2024 on Search Engine Land Search Engine Land How to identify untapped opportunities in PPC Search Engine Land The restaurateur: A new essential human role in PPC and digital marketing Search Engine Land How to improve PPC lead quality for B2B campaigns Search Engine Land How to do PPC competitor analysis Search Engine Land Google Ad Manager: What Small Businesses Need to Know Business News Daily 9 Proven Ways To Improve Your PPC Campaign Performance Search Engine Journal Data: Q5 (Dec. 25- Jan. 1) ads can pay off big for brands Search Engine Land How to Use Amazon Sponsored Brands Ads Jungle Scout Google Ads Search Max – new match type spotted Search Engine Land Google Ads outage disrupts campaigns Search Engine Land How to succeed in the era of AI-driven search advertising Search Engine Land Confirmed: Google isn’t dropping ad scheduling for Smart Bidding campaigns Search Engine Land Advanced analytics techniques to measure PPC Search Engine Land Top 10 Google Ads mistakes to avoid in 2025 Search Engine Land AI and Google advertising: What’s next? 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