It is always hard to decide how to spend marketing dollars. If you have a large company, you usually have a larger marketing budget. If you are a small business owner looking to maximize your small marketing budget, then you may be interested in the science of bid management. This science is intertwined with pay per click advertising. Pay per click advertising is a great way to spend your marketing dollars, but it is important that you look at it carefully and that you are armed with a quiver of information about how you implement that pay per click advertising.
Clicking Explained
Pay per click advertising is simply an internet advertising model that is utilized to direct traffic to a website. These banner ads are usually found on relevant websites, enticing consumers to click and be directed to the website. When consumers click on the ads, the affiliates are paid. If business is not generated and clicks don’t happen, payments don’t exchange hands either. If you are looking to only pay for marketing that is successful this is a good way to go; however, the point of marketing is to generate business. If your pay per click ads are not generating business, your markeing strategy is not working. You don’t need to abandon the idea of pay per click advertising, you may just need to fine tune the key words you are working with or define what your goals are in working with pay per click.
Differing Goals
You can look at the different ways in which to use your management software. There are a few different options available, including:
- Click Maximization: The system attempts to buy bids for the cheapest price possible, looking at the price difference between keywords.
- Conversion Maximization: The quality of the clicks as well as the cost is taken into account together. Complicated algorithims are used to garner this information; therefore, information can take longer to generate.
- Profit Maximization: This is based on a conversion measuring, and the quality of conversions. This type of maximization requires solid numbers and information and can be unsteady if numbers change.
Mathematicians Unite
Thankfully, you don’t have to be a Harvard mathematician with a room full of abaci to calculate all of the values associated with pay per click advertising. You have access to super smart programmers who have an intimate knowledge of all the variables associated with this type of advertising. These programmers speak algorithim, and have done all of the work for you. You just need to decide what type of advertising you would like, what your advertising budget is, and what your business goals are. You can work with a marketing professional who can use bid management software and pay per click advertising with as much ease as a doctor wields a scalpel. Your revenue will thank you for it, and so will your business budget. Your algebra teacher will be so proud that you are actually using math in your everyday life.