Technological advancement is striving for new height. No a day’s everything is fast and rapid, people don’t have time to move their focus from their business. Everybody is making sure that they earn maximum profit, however, since the new methods and technologies have evolved during a period of time people keeps on looking for a cheaper and easier way of earning a profit or increase revenue for their business or company. Companies are hiring agencies to plans their investment program so that they can maximize their profit.
These agencies make an investment plan for a business so that the business can earn a maximum profit by spending less amount of money. However, some online businesses are using internet advertisement techniques to earn more revenue. Instead of hiring investment planner they are using a different platform to put up their advertisement and the cost of putting up an advertisement is lower than the investment planner. According to the recent scenario, the most common tool used by companies to earn a profit is pay per click. It is a cheap and most appropriate technique for the startup and also for established business. It doesn’t require huge investment and resource, all it requires is proper implementation and method to be used.
What is pay per click?
Pay per click also refers to PPC is a tool designed for internet marketing. Its main aim is to direct and guide traffic to websites. The adviser pays an amount of money to the publisher every time someone clicks on the ad posted. It is normally used in Google Adwords search engine.
What is Google AdWords?
Google AdWords is created and owned by Google, it’s a platform where advertisers can display their advertisements by paying fees and they will get money every time a visitor clicks their advertisement. Not the only advertisement can be displayed, one can also display product details, videos information, and various service offerings advertisement.
You can easily make an AdWords account in order to create AdWords campaign or ad campaign. If you don’t want to make a separate account for Google AdWords you can also use Gmail account to get access to Google AdWords. The ad campaign has different types of ad groups and every group has different ad texts depending upon the keyword, which a user can type in Google.
Pay per click (PPC) is a part of the investment strategy of the company or a business. Every firm makes an investment in a belief that they would be getting a higher return on it i.e. the return on investment (ROI) would be high. The main aim of a company is to get a high return on their investments. Not only offline businesses are using this tool, online businesses are also using this tool to earn more money.
One of the biggest mistake committed by a business is they relax after starting PPC campaign. They feel that their work is done but in reality, it is just the initial stage. Once the campaign is started a company needs to keep an eye over it so that ROI (Return on investment) can be measured. If a business is not maintaining its return on investment record then if they are wasting their resources.
There are some factors which cause a change in the Return on investment (ROI).
Factors causing a change in the return on investment are:-
- As soon as the average transactions increase, it will lead to better return on investment on PPC. Therefore, higher average transactions mean a higher return on investment.
- If the cost of per click is higher than it will lead to decrease in return on investment. Therefore, the cost per click should be low if you need a higher return on investment.
- It is good to have a high number of conversions. It helps in gaining larger profit. Therefore, a higher number of conversions means a higher return on investment.
Since we know the situations which can affect the return on investment. Now we can discuss factors require for obtaining revenue from pay per click.
Methods to earn maximum revenue from Pay per click (PPC)
Clicks and Impression
The first thing which needs to be done is to count the number of the advertisement displayed. Once counted then the numbers of clicks received should be calculated. This will help you in knowing the quality of the advertisement displayed. If the number of advertisements is high and the clicks received is also high then everything is perfect and precise, but, if the number of advertisements is high still the number of clicks received I less then it may cause a problem. The reason for less number of clicks received can be the inability of the advertisements to attract the visitors. In this situation, the advertisements should be made more attractive so that the clicks can be increased and more profit can be earned.
A score is a number of figures provided by the search engine. The score is based on the previous CTR. In order to increase return on investment one must have a higher score because it shows that the keywords used are applicable or not. If the keywords are used in the proper manner and prudently then the score will be higher. The search engine gives ranks to the advertisements based on this score only. Higher the rank, higher is the chances of receiving more clicks. Additionally, it makes that the advertisements are placed in a relevant place where it is most needed to attract more visitors.
Determination of CPC (Cost per click) and CTR (Click through Rate)
cost per click tells the amount which advertiser will be paying to the publisher every time someone clicks on the advertisements posted. In other words cost per click. CPC of every business is different if the level of competition is higher than it may lead to Higher CPC. CPC is an important factor affecting the Return on investment. Moreover, Click through rate is also a significant factor. CTR is obtained by dividing the number of clicks by impressions. Every business desire higher CTR.
Return On Ad Spent (ROAS)
Return on Ad spent is used to determine the outcome from PPC marketing campaign optimization. It also helps in determining the revenue received from an investment. It is said that if the return on Ad spent is higher than the chances of getting a higher return on investment is high. In short, if ROAS is higher than the return will also be good and higher.
Combine value of the Conversion
Another important aspect to determine profit is the total value of the conversion. It is a relationship between keywords and advertisement campaigns. The value of conversion should be higher in order to obtain higher revenue from an investment.
So, the above methods help in determining the revenue. It can be also called as Return on investment calculator (ROI). After using the above-given methods a business or a company can easily predict the outcome of PPC marketing. Always remember a good investment is an investment which provides a higher return on it. And a bad investment can be made good by looking into its faults and repairing them in a best possible manner. So what are you waiting for go and check Google AdWords and start earning more right form this moment?