Before you start your ad campaign, its important to know what your current cost per lead is. You need to know how much each online sale costs you. You will need three pieces of information: the number of visitors your site gets per month, the number of sales you make per month and your monthly marketing expenses. Once you know what those are, you can work out your cost per customer. Here’s a little tool to help you work it out:
The next step is to decide how much you want to spend per keyword. Knowing the conversion rate is very helpful here, use it to decide how much you are able to spend to achieve a sale. If your site receives 1000 visits per month and generates 100 sales, your conversion rate will be 10%. If your website has a lot of repeat customers, the calculation won’t be as simple! Repeat customers are far more likely to generate a sale, with or without the advertising. Generally speaking, you should not pay more than your profit margin. If you make £100 for every 1000 visitors, you should be paying less than 10p per click in order to make a profit.
Find your keywords
You will also want a list of keywords. These are the words you will target for advertising, depending on search volume. Ther online tools like the Google Keyword tool can help you here. If a keyword (or combination of words) is popular, you can expect to pay more for your ad listings. You want to base your campaign around a group of keywords, some will be more popular than others. A balanced approach between popular and specific keywords generally works out better.
Make an account
Once you know which keywords you want to target, and how much you are willing to pay for them, its time to get a PPC account! Google adwords and the Yahoo/Bing marketing solution are the biggest providers on the market, pick one to start with. WHen you sign up, you will be asked to set your maximum budget. If your budget is £100 per month, the search engine will display your adverts untill £100 worth of clicks have registered and your account is empty.
Your ads will be made up of a title, a description and a link. The title and the description text are very important, this is how a search engine determines whether your advert is relevant. Its in your interest to keep these short, you also want to include your keywords in both the title and the main text. The title should be 25 characters or less, and the main text 35 characters or less.
The ranking of your advert depend on how much you bid for the keywords in question, how relevant the keyword is to someone’s search and the relevancy of your website. It helps if your website is optimised for the keywords you want to advertise on, that will make your campaign much more efficient.












