PPC Management

If you’re a content provider, it’s about time that you know how to determine how much to bid when running a paid search advertising campaign. If you’re not into math, then you should be by now if you want a positive return of investment to head your way.

To decide how much to bid, the first thing you must do is to realize the revenue per visit. You have to find out the value of the page by determining the average CPM of the adverts shown on the website. Multiply the CPM by the number of adverts per page and divide by 1000. This gives you the average revenue per page. Next, take the average revenue per page and multiply it by the average number of pages consumed per visit. To give you a clearer picture of this calculation, check the equation.

CPM x Ads Per Page

——————– x Pages per Visit = Revenue per Visit

1000

The result is your expected revenue from a visit, or how much you expect to make per visitor. This must be your maximum bid for every keyword.

With the value of a visit, you can now determine what keywords to bid from the content provided. There are tools and software to help you find out which words are more searched than others. Bidding half the amount that you have determined above is a good starting point.

When your PPC campaign is up and running, it’s important that you constantly check the results and implement] more advanced bid analysis. Just a piece of advice, so that you’ll have a modified bid value for each keyword, separately monitor those individuals coming from your paid campaign and from those coming through natural or organic search results. If you have understood what a PPC visitor would do, you can begin tailoring your bids to generate either a higher returns per visitor at a lower volume or generate more volume at a lower return.

Therefore, content based providers should start examining the value of every visitor to their site. It just needs careful monitoring and bid analysis to make a Pay Per Click campaign profitable yet economical. After you have launched your initial campaign, it would not hurt to consult a PPC advertising services provider to initiate more advance bidding concepts to gain a much better return of investment.