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PPC For Dummies - Part One Of Two
by Scott Van Achte ©Copyright 2004

For the beginner, understanding PPC (Pay Per Click) services can 
be utterly confusing. With so many search engines to choose from, 
and so many options within each one: different billing schemes, 
different terminology, and different techniques for ranking in 
the top spot, the learning curve is quite substantial. So why 
would anyone go to the trouble?

For quite some time now Google has been the primary source for 
web search. Nearly everyone who has ever used a computer has 
either used, or at least heard of, Google. But as the Florida 
update has shown us, free placements in the search engines are 
not as stable as we would like them to be. Sure, after an 
algorithm change, we can go back to the drawing board to figure 
out the newest line of attack, re-optimize a site, and bring 
back that first page placement, but how much traffic and sales 
are lost as a result of the down time? 

When it comes to most PPC campaigns you can be sure of one 
thing: Your rankings are stable. When you go to bed, you know 
that when you wake up the next morning your placements will 
still be there. Now, of course in many cases you may be out bid 
in Overture and find yourself slipping a couple of notches, but 
after a quick adjustment to your maximum bid, you're back in 
contention. This is a far cry from the months potentially lost 
after slipping (in some cases off the charts) into the dark 
abyss of positioning. 

Google is not going away any time soon, so it is still very 
important to optimize and try to get those top placements 
regardless of whether or not you wish to pursue a PPC campaign. 
If you are ranking well on Google, in many cases it is still 
well worth it to pursue PPC placements as well to get that extra 
exposure. With a PPC campaign it's important to remember that it 
isn't always as simple as paying top dollar to dominate the 
number one spot. Regular tweaking and maintenance are required.

So what is involved in achieving top spot in a PPC campaign?

Google Adwords
Your Google AdWords Ad is given a ranking value by multiplying 
your maximum Cost Per Click (CPC) with your current Click Through 
Rate (CTR) and ads are sorted accordingly. 

For AdWords, you must constantly monitor the performance of your 
keywords and ads. If the CTR of your keywords begins to slip then 
your position will most likely drop, and it's time to either 
re-write your ads to draw attention, adjust your max CPC, or a 
combination of both. What will work best, depends on a variety 
of variables; your CTR, current CPC, how competitive your keyword 
phrase is, and the wording in your competitors ads. Remember you 
want to stand out as the obvious best choice.

Looksmart
Looksmart has a PPC Service that is somewhat different than 
AdWords and Overture. With Looksmart you write your own title 
and ad text for your listing and pay a set rate of 15 cents per 
click. The ranking order for listings is "based solely on their 
relevance to a user's search as determined by LookSmart's 
proprietary search algorithm. Payment does not influence the 
appearance or rank of the listings in the Reviewed Web Sites 
section." ( - Looksmart)

If you choose to use Looksmart, it is essential for your website 
to be properly optimized. The main downside to Looksmart is that 
your payment of 15 cents per click is just to get you listed, 
and does not guarantee any positioning. 

Overture
The ranking of your Overture listings is determined by one thing 
and one thing only. How much you are willing to pay. If your ad 
position drops, increase your bid and within seconds you are back 
to where you left off. Now remember, being number one is not 
everything. If people see no interest in your listing, they will 
simply click on number two. Of course, this doesn't cost you 
anything directly, but indirectly you may be losing the all so 
important sales. This is why it's important to have carefully 
written copy for your listing. 

In the case of Overture, Looksmart and Google ads, the copy you 
choose does not affect your position, so you don't need to worry 
about the ad being 'search engine friendly', but you do need to 
ensure it is searcher friendly. Carefully select the wording to 
use in your ad copy and be sure to include the keyword phrase in 
either the title or the beginning of the text. Say something 
that will jump out at the reader. You want them to see your ad 
as being highly relevant to their search, as well as being 
interesting and inviting. Remember; just because you dominate 
the top spot, does not mean you will necessarily draw all the 
traffic (although it does help!)

Before you get started with any PPC Campaign be sure you 
understand the search engine's billing practices. Google 
AdWords charges a one time, $5.00 setup fee, and after that you 
pay only for delivered traffic. Overture does not have a setup 
fee, but they do require a minimum charge of $25/month, 
regardless of whether or not your click through's have 
accumulated to that total. Looksmart bills at a flat rate of 
15 cents per click. Each engine has a different billing plan
for minimum usage, and it's important to understand them so 
that you don't get burned.

Once you have selected what search engine, or engines, you wish 
to use, start off by reading through their FAQ page, guidelines, 
tips pages, and absorb as much information as you can to get a 
good grasp on how their PPC system operates. If you are new to 
all of this, AdWords and Overture will seem overwhelming at 
first glance, but your understanding will grow the more you 
review the information offered by these engines. It doesn't take 
long to get a firm grasp of the various systems. 

Coming Soon: Scott Van Achte writes on how to choose your max 
bids and wording for your PPC campaign.

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Scott Van Achte is a Search Engine Optimization Professional and 
PPC Manager at StepForth Search Engine Placement Inc. Based in 
Victoria, BC, Canada, StepForth is the result of the consolidation 
of BraveArt Website Management, Promotion Experts, and Phoenix 
Creative Works, and has provided professional search engine 
placement and management services since 1997. 
http://www.stepforth.com/ Tel - 250-385-1190 
Toll Free - 877-385-5526 Fax - 250-385-1198
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