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Pay per click advertising advice * how to increase sales * reduce the cost of your pay per click advertising whilst increasing sales * making money from Google PPC

If you are serious about making money from the internet then you are going to need to get involved with pay per click advertising (PPC) sooner rather than later, even if you manage to become an expert in SEO. That is a fact, for reasons we will look at later.

But, an equally true fact is that if you venture into pay per click advertising without knowing what you are doing, you could very easily chuck a whole load of money down the drain.


However, our advice is; if you take the time to learn about PPC before you rush headlong into setting up your first campaign, then you have the potential to generate large volumes of traffic to your website, and hence create profits in return for a minimal advertising outlay.

I've been using PPC programmes for about six years. In that time, I have learned a lot about how to squeeze every last bit of value out of my pay per click advertising spend. Some of it I have worked out myself through my own (sometimes expensive) trial and error. The rest of it has come from what is probably the most valuable e-book I have ever bought. More on that later


What is Pay Per Click?

First, let's talk about what we mean by pay per click advertising and how it works.

Pay per click adverts are the ones that appear down the right hand side of the screen (and sometimes just above the main search results) on search engines such as Google, Boogami, Yahoo, MSN, Ask, etc. They appear under a heading such as "Sponsored Links" and there are usually about 10 adverts per page of search results. They are a virtually guaranteed way to increase sales.

The first successful PPC programme was launched by a company called GoTo in 1998. GoTo offered advertisers the opportunity to place bids in an attempt to appear at the top of the results pages for specific search engine queries. So, for example, an estate agent in Notting Hill (a suburb of London) might decide to bid 1 in the hope of appearing at the top of the search results whenever someone searched for "property for sale London".

If more than one advertiser bid on the same search term then the order in which the ads appeared was determined by the amount bid. So, an advertiser who bid 1 for the search term "property for sale London" would appear higher up the listings than someone who only bid 90p.


Whatever amount the advertiser had bid would be charged each time someone clicked on their advert. This was the key thing that marked out pay per click from the other forms of online advertising which had gone before it. Previously, with things like banners, charges were made according to the number of impression - i.e. how often the advert was shown to people. But with PPC there are no charges for an advert being shown; there is only a charge when the advert is clicked on once it has been displayed.

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The basic principle of pay per click programs has remained the same ever since. However, contrary to popular belief, the bid price is no longer the only thing that determines what order the adverts appear in. And it is understanding how this works that will enable you to reduce the cost of your pay per click advertising.

GoTo later renamed itself to Overture and did very nicely out of providing the PPC advertising for major search engines such as Yahoo and MSN. Yahoo liked Overture's service so much that they bought Overture in 2003 and eventually rebranded it as Yahoo Search Marketing (which is what it is known as today).

Meanwhile, Google had set up its own PPC system called Google AdWords which offered a much greater range of features than Overture. The latest version of Yahoo Search Marketing, introduced in 2007, attempts to offer many of the same features which Google AdWords has had for many years. However, in my opinion, it is still not as easy to use or advanced as AdWords and does not produce as profitable results as Google AdWords.

For that reason, and because Yahoo now offers most if not all of the same features as AdWords, I am going to focus purely on AdWords for the rest of this section.

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Creating a PPC Campaign

So, how do you set up a successful pay per click advertising campaign and set about increasing sales?

Broadly speaking, there are three things you need to get right in order to get the best out of PPC: your advert, your keywords, and your bid prices.

Let's start with the keywords.

Your keywords are the words and phrases that you are going to bid on - i.e. the things that the potential visitors to your website might be typing into Google as search terms. So, a list of keywords for the Notting Hill estate agent in our earlier example might look like this:

estate agent London
property for sale London houses for sale London
flats for sale London
real estate London
buy property London

If you set up your PPC campaign with the above list of keywords, then your advert would potentially appear whenever someone typed one of those phrases into Google.

The next thing you need is an advert. Your advert will need to follow the same kind of format as all the other sponsored search results that appear on Google. That means you will need a title of up to 25 characters followed by two lines of text (max 35 characters each) and then a line that contains the URL of your website.

So, an advert for our estate agent in Notting Hill might look like this:

London Estate Agent
Wide range of flats and houses
to buy or rent. Friendly service.


And the final thing to do is decide how much to bid. If you enter a bid price, then Google will give you an estimate of whereabouts your advert will appear in the rankings for that level of bid. So, you might find that if you entered a bid price of 2 per click that your advert was estimated to appear in positions one to three for your chosen keywords. On that basis, you might decide to go with a bid price of 2 per click.

If you are a London-based estate agent, then hopefully you haven't been following me step-by-step and setting up your own campaign in this way as we have gone along, because the way I have just described it is the wrong way to set up a new AdWords campaign. Creating your PPC campaign in this kind of way will cost you a lot and is unlikely to generate you much in the way of quality enquiries. This is not how to make money from Google PPC.

Why is that? Well, there are a number of reasons....

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The Golden Web - The Internet Entrepreneur's Definitive Guide to Making Money Online

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Pay per click advertising advice * how to increase sales * reduce the cost of your pay per click advertising whilst increasing sales * making money from Google PPC

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