If you're new to the internet marketing world, there is no other subject you should thoroughly research first before investing in than pay per click advertising. Targeted traffic is absolutely wonderful, but only if you can afford it.
Let us first define what I mean by affording ppc marketing. Lets say you pay 25 cents per click, that's $0.25. And the rate by which you convert a targeted visitor to a paying customer is 1 person in every 100, or 1% conversion rate. If the commission you were paid for one sale was $20, it would take you about $25 in pay per click costs to make that $20 sale. In this case you would be losing $5 for every sale, and it would not be worth it for you to continue.
What we are talking about now is ROI, or return on investment. Of course, it would not be worth while to pay $25 in advertising for a single product commission of $20. That's why managing your budget in ppc marketing is only too important for your success.
Let us now talk of keyword basics.
Brackets and quotes should always be used [] "" [Your keyword] "Your keyword" A naked, broadly matched keyword rarely does anything for you except perhaps drive window shopper traffic to your site/link. What you want is a customer just itching to pull out their credit for the product or service they are looking for, not someone merely looking around for whats good. Remember, you pay to have each of these customers look at your site for a potential sale. Why not ensure each of these customers is more targeted for a sale?
People try to get out of or around this next step, but for truly successful ppc marketers, there isn't really a substitute. Keyword research will save your wallet from you possibly investing in irrelevant or otherwise slightly untargeted traffic. Its always good for you to research profitable keywords, wherein your cost per click (cpc) is reasonable and the return on investment (ROI) makes it worth marketing the product.
Never, I say, never let yourself go on an emotional keyword binge where you have a targeted keyword and your receiving clicks to your site, but you lead yourself too far out of budget to make any sale worth it. Like the above example, if you pay more for your advertising than the commission you receive upon completion of sale, what is the point? You defy your own profit seeking motivation.
These are only absolute basics of course. For an excellent educational resource, click on the link below: http://www.internetmarketing-club.com/
Donald Johnson is a college student in San Diego, California. He is an internet marketer, doing so as a hobby, ultimately to help others who find themselves struggling to make money online.
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