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PPC For Dummies (Part 2)
by Scott Van Achte ©Copyright 2004

To view (Part I) of this article, go to: 
http://www.sitepronews.com/archives/2004/jan/12.html

Two of the most important factors of any Pay Per Click (PPC) 
campaign are creating successful ads and deciding how much to 
pay per click. There are many PPC options out there to choose 
from, I am going to focus on the two most popular, Google 
AdWords and Overture. 

Creating Your Ads for AdWords
Creating your ad copy is the single most important part of any 
ad campaign. You want your ad to stand out amongst the others 
and scream out 'click me!' If your ad looks the same, and says 
the same, as everyone else's, searchers will simply pass it by.

Before creating your ads you need to determine your target 
market and keyword selections. If your company focuses on a 
specific market niche, try to target your ads in regards to 
that niche. Properly targeted ads will almost always out-perform 
those directed at a general audience.

The ad you create should include your main keywords either in 
the title or near the beginning of the body text. Draw attention 
by using call to action phrases and words that provoke 
enthusiasm and response. Use phrases like " Save on DVDs," "Get 
cheap stereos," or "Join now for 20% discount," etc. Just be 
cautious and be sure to follow Google's Guidelines. If you 
advertise something that you don't offer, Google will pull your 
ad. Also, if your ad offers something free, make certain that 
its listed on your landing page! 

Once you are satisfied with your first ad, create 3 more ads 
that are radically different from the first. After 3 or 4 days, 
take a look at how your ads are doing. (If you are using less 
frequently searched terms you may have to wait 1-2 weeks for 
better results.) Check the click through rate (CTR) of each ad. 
In most cases, one of your 4 ads will be out-performing the 
rest. If this is the case, delete the poorly performing ads and 
create 3 new ads that are similar to the successful one, each 
with subtle differences in the title and body text. 

Again, wait 3 or 4 days to see which ad is performing best. If 
you notice that one ad stands out, repeat the process. Eventually 
you will end up with 4 quality ads that are performing equally. 
Once the ads have leveled out, continue to keep an eye on them. 
I recommend that you do so daily. If one begins to slip, tweak 
the wording. Monitoring your ads is essential, if you want them 
to perform well. 

Determining Your Max Cost Per Click with AdWords
With AdWords, when you enter your MAX CPC, Google will show the 
estimated average position for each keyword. (The position 
predictions provided by Google are based on historical data from 
previous advertisers and are not 100% accurate, but will give 
you an idea of what to expect.) 

Unfortunately, there is no way to see what the competition 
is paying, so in most cases, it's a bit of a duck hunt. I 
suggest starting with a MAX CPC that is slightly higher than you
might normally pay. This will ensure a slightly higher ranking 
for your ad and increase your chances of accumulating clicks. If 
your ad performs well, your rank will increase. Once you have 
attained a good click through rate (CTR), you can adjust your 
max CPC to reflect the position you wish to obtain. (See part 
one of this article to find out how Google ranks ads.) 

Creating Your Ads for Overture
Writing the perfect ad for Overture is somewhat different 
than for AdWords. Overture only allows you to create one ad 
per keyword, so testing various ads and going with the obvious 
winner is not an option. However, the basics for creating your 
initial ad is virtually the same. After you have selected your 
target market and main keywords, write a specific ad targeting 
each individual keyword. Be sure to include the keyword in the 
title or beginning of the main body text along with a call to 
action phrase that will draw attention. Remember to check the 
status of your ads on a weekly basis and tweak as needed. Keep 
an eye on your click through rate and regularly modify poorly 
performing ads. 

Determining Your Max Cost Per Click with Overture
Deciding how much to spend on Overture is simple. Take a look at 
what the competition is spending and out bid them. With Overture 
you should always try to be in the top 3 if you wish to have your 
ad dispersed among partner sites (Yahoo, Lycos, MSN, etc). If the 
number 1 spot is currently paying 25 cents per click, you need 
only bid 26 cents to grab the number 1 spot. If you want the 
number one spot but are also willing to pay more, you can bid 40 
cents, and will only be charged the 26 cents. One penny above 
the competition. Keep in mind though, if someone else increases 
their bid, your actual cost will also increase up to the max CPC 
you have entered.

Managing an AdWords or Overture PPC campaign can be confusing at 
first, but it doesn't take long to get a handle on what works. 
Creating a highly successful ad the first time around with either 
AdWords or Overture is a rare occurrence, but with a bit of regular 
maintenance and a well targeted campaign, it doesn't take long to 
start seeing results.

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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. You can read more of Scott's articles and 
those of the StepForth team at http://news.stepforth.com or 
contact us at http://www.stepforth.com/ Tel - 250-385-1190 
Toll Free - 877-385-5526 Fax - 250-385-1198
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