Cost per Click can easily be explained as the amount that you will have to pay every time someone clicks through to your site from the site of a person signed up to your pay per click marketing scheme. Once someone clicks on a link on a site and are taken through to another site, they are considered to have taken part in the scheme and the person owning the site they clicked through from, will be entitled to payment. They have brought someone to your site and given you the chance of a sale, so will need to be paid.
Due to the effect you are playing for clicks, you need to know what you want to get out of the endeavor as well as what you are prepared to pay. There is a formula used to determine how much you need to pay and this is worked out over a period of time and is calculated against a number of competitors. The actual cost will be affected by the ranking both you and close competitors achieve.
Cost per click is a very important part of search advertising as it is this that will determine how worthwhile the advertising campaign has been. Important factors will be the amount that you pay for each click and also the amount of business that is brought in because of the process. As a result it is vital that clicks are identified that will be valuable as well as good value. The ideal situation will be to bring down the cost to be paid per click and not losing out on the quality of the contacts being brought in.
In order to do this the Quality score has to be raised and Google enables this to happen by way of a system that is automated. PPC schemes that are well managed and also have good scores, will see an improvement in the price they pay. If the score is 6 or more, it will be at least 16% and up to 50% decrease in cost, while 4 or below show increases of up to 400%.
The way to get the most out of the campaign is to find new PPC words that will be used as keywords but only in conjunction with cutting back. As new opportunities are taken on, it is vital that old, less successful ones are ended.
