Websites have to accomplish many missions. One of the most important is being effective at getting people to perform whatever action you are wanting such as buying an item, submitting an email address or downloading a report. The rate at which you convert visitors to these actions has a significant impact on your ability to use pay per click (PPC) ads. If a click on an ad costs $5 and you convert 1 out of 10 (conversion rate equal 1/10 or .10, then it costs you $50 per action. If you value that action at more than $50, it makes sense to use PPC in your marketing strategy. Since PPC is an auction system and if the value of the actions are the same amongst competitors, then if you convert at a higher rate than your competitors, then you can bid a higher price per click and still achieve the same or better cost per action (cost per click / conversion rate = cost per action). Being able to bid a higher amount yields a higher position and more clicks which gets you more revenue than your competitors! An excellent series of articles on PPC strategies is at St Louis Pay Per Click

Tags: pay per click, web marketing

This entry was posted on Thursday, February 19th, 2009 at 11:51 pm and is filed under Website Marketing Strategy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.