PPC (Pay-Per-Click)

 Another service that PaxMondeo offers is the planning, implementation, evaluation and monitoring of PPC (Pay-Per-Click) advertising campaigns. PPC advertising campaigns involves developing advertisements that will be displayed on a search engine results page when a specified keyword is searched. As the name suggests, a cost is incurred each time someone clicks on the advertisement. The great thing about PPC is that the cost can be very minimal; the user can specify how much they are willing to spend on each click. This is called ‘bidding,’ and depending on how much the advertiser is willing to outlay for each click their ad will be placed higher on the list of ads.

Probably the most powerful tool that PPC offers is the ability to undergo concentrated, targeted advertising by offering geo-targeting that is advertising to those in your targeted geographic area. This is a great function because not only will your ad appear to those who are undergoing a search for your relevant field of business but they will be in your geographic area! The potential here is huge! PaxMondeo are not only experienced Web Developers but have a great deal of expertise in the field of marketing, so rest assure that your PPC advertisement will be optimised to attract attention and action from your target market.

Bidding for ad placement is done by selecting what keywords you want your ad to appear under. In saying this, those keywords that are searched for very often will generally have quite expensive CPC prices. The reason for this is that bidding for the ad-spots will be highly competitive and therefore high price. This is where it is important to know how much you are willing to bid for each click. This is determined using the conversion rate. This is another service that PaxMondeo can do for you.

 We can determine your sites conversion rate and using profit estimates calculate your maximum spend per click to break even. The conversion rate is the percentage of visitors to the site that purchase a good or service. E.g. for each 500 visits an online retailer has they get 15 sales, this is a conversion rate of 3%. If each item sells for $100 and the retailer takes 15% profit margin then they will make a total profit of $225. We can then determine how much is the minimum spend per click in order to break even by dividing the profit by the number of visitors, in this case the breakeven price is 45 cents. As your conversion rate increases with the implementation of the PPC campaign, (i.e. higher volume of sales per number of visitors) your profit margin will increase and therefore you can afford to spend more on PPC this means that you can afford to target a more competitive keyword, place your ad in a higher position or simply keep the profit for yourself! It cannot be understated how important it is to increase the conversion rate because as competition increases it is inevitable that the bidding price is going to increase. If maths isn’t your thing and you don’t like the sound of doing these calculations pass the task onto us and we will gladly do it for you!