Tuesday, November 10, 2009
Pathway Homes New Home Builder Georgia and Alabama
Contact Builder Consulting today to have a better website built for your company 913-814-8844 or online at www.BuilderConsulting.com
Tuesday, June 16, 2009
Understanding Pay Per Click (PPC) Advertising
In traditional advertising marketers charge for a specific location in a magazine or newspaper in hopes that someone saw the advertisment based on a distribution number created by the company selling the advertising. This left much to be desired since the company selling the advertising was the same company providing the customers with the 'distribution numbers' estimating how many people might see the magazine or newspaper and hopefully view the advertisment inside of it. There was no true way to judge how many people saw the advertisment or what the return on investment was for the ad campaign. Online advertising, specifically pay per click (PPC) changed things with the pay for performance method of costs.
With PPC advertising a company only pays when the advertisment they show on the search engine is clicked on and a prospective customer is taken to the website to view the customer. When a customer simply views the ad on a search engine, without clicking, then there is no cost to anyone. Advertisers may setup a daily and monthly budget to spend for ads in addition to individual bids (yes bidding similar to ebay) for each search term or keyword phrase. A company or individual may bid for a particular phrase or set of keywords to have their advertisment show up when a search was done for those words on a search engine. The benefit is that advertisers pay for exactly what they receive while the detraction of bidding on keywords is that competitors can instantly outbid each other driving the costs up dramatically.
This means that ten companies may bid for the keyword phrase 'Kansas City Website Companies' all spending $1 per click to show up in the first ten advertising locations on a search engine. When ten more companies decided to bid on the same set of keywords they outbid the first companies for $1.50 per click or 50% higher cost per click. When the first set of companies see they have been outbid and their ads are no longer showing then they bid $2 a click or 100% more for the same traffic. Bidding sometimes becomes extremely competative when people or companies target a specific keyword phrase with no limit on how high the bidding goes for each click.
The benefit of Pay Per Click is that companies never pay for the branding/marketing aspects of having online users view the ad unless the online user actually clicks on the ad (thus pay per click). Online marketers sometimes neglect taking the time to search for the best 'bang for the buck' when setting up PPC accounts for clients. Builder Consulting spends several hours consulting with the customer to determine the top keywords and phrases then sets a specific budget for each term based upon the overall monthly goals and cost per click likelyhood of a return on investment. Keep in mind that any account setup with a daily and monthly budget will not show all ads all of the time.
The rate at which ads are shown is based upon budgets, likelyhood of the ad delivering a click (more effective ads are shown more often), the number of advertisers paying for each search term and the remaining balance of a budget for each advertiser. Any individual or company can setup pay per click advertising in a matter of minutes, setting it up properly to requires experiance and an understanding of the overall concepts, goals and technical aspects of the systems to provide a true return on investment.
Robert 'Dot Com' Jackson
BuilderConsulting.com
913-814-8844 Offices
Wednesday, June 10, 2009
Return on Investment (ROI) from Online Marketing
The largest is not always the best and marketing dollars should be invested where the best Return on Investment will be accomplished. Advertisments for 'Kansas City New Homes' on Google AdWords can cost up to $3.85 per click reaching 60% of the online users. The same advertisment on Yahoo averages $1.31 per click with 18% of online users. with a mere 14% of online users Microsoft bCentral advertising will cost $1.12 per click. A monthly budget of $500 would give:
- 129 clicks (potential buyers) from Google
- 381 clicks (potential buyers) from Yahoo
- 446 clicks (potential buyers) from Microsoft bCentral
Others considerations for online marketing are demographics and usage - consider that Yahoo became the top Search Engine 8 years ago and remains the top destination for finance and business users. Google has the largest porportion of teenage users making it perfect for marketers wanting to sell IPOD's, concert tickets or Teen Magazine. Researching the demographics to ensure your marketing dollars are reaching the proper audience is more important than the total number of users on a specific search engine. Pay Per Click alone is not an effective long term marketing solution. Pay Per Click is effective for targeted traffic with a set budget yet will constantly cost more for less results or traffic as others bid against you for the top spots.
Developing a professional website incorporating the key aspects of design, Search Engine Optimization, navigation, usability, content, purpose and one-click call to action opportunities is the best overall solution. Investing more in expert website services will reduce the costs required for constant paid listings when your website shows up naturally online. Websites listed through pay per click that are poorly designed or ineffective are PAYING to exclude themselves from buyers!
Robert 'Dot Com' Jackson
http://www.BuilderConsulting.com

