What Does Return On Investment And Pay Per Click Have In Common?

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January 19th, 2009 by

Investments are risky yet so is PPC marketing. Both will require you, the advertiser to put money into them before any form of return can be seen. Finally, both will require time before you will be rewarded the returns.

Managing ROI on your PPC

The advantage of PPC is that you are able to generate traffic to your website immediately. This is very much unlike other forms of Internet advertising such as SEO, which can take up to 12 months before your web presence is noticeable.

PPC is useful because, if it is optimised, then the profit per client is higher and subsequently their ROI will also increase. However, the converse can be true if the keywords you are using targets browsers, then your ROI will be very low.

Hence, most of the time companies are trying to optimise their keywords so that the clicks do not go to waste. Say that your keywords are optimised and your PPC campaign is at its best, then the relationship between ROI and PPC becomes proportional.

That means the more the clicks the higher the return on investment since you will be profiting from each click. However, the growth will also reach a plateau since all your traffic is paid for. The only thing is the number of clicks your limit per day will be the barrier of your plateau

The downside to PPC is that competitors could meddle with your campaign by committing click fraud (one of the risks of PPC), thus you will need to be able to detect and prevent this.

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