The reason Pay Per Click advertising is so popular is that everyone can do it – with a budget as little as $50 or $100 (or less). But, not all clicks are created equal. Some can cost mere pennies, while others can go for tens or hundreds of dollars each.
So, how do you determine how much you want to spend per click? Well, it’s an art.
Pay Per Click Marketing: 2 Tips on How to Spend Little and Gain Big
Budget: Start with the amount in your budget to determine how many clicks you can get. For example, if you have a $100 per month budget and you bid on a keyword that is 25 cents per click, then you can afford 400 clicks per month.
If you bid on a keyword that is $5, then you can only get 20 clicks. So obviously, the larger your budget the more clicks you can afford. And, this is why you’ll always see the big boys at the top. You won’t be able to outbid them.
Now comes the cool part though that does allow you to spend a little, and still gain a lot.
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Position Smartly: As in, don’t even shoot for being number one. As we discussed in the post, Pay Per Click Marketing: 3 Tips for Quicker Results, “research has proven that being number one isn’t necessarily the best spot to be in . . .because you get a lot of curiosity seekers who’ll click on ads in this spot. . . . [but won’t buy].”
This wastes money.
The best strategy is to position yourself high enough to bypass the tire kickers, while keeping your cost per click as low as possible. In order to do this, you have to know which keywords to use to get you in this “sweet spot.” It’s an art, and takes time and testing, but well worth learning.
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