Pay Per Click (PPC) Management


Pay per click (PPC) advertising sounds like it self regulating since the advertiser pays only for clicks, but that's only one part of the story. In fact, companies spend many thousands of dollars on PPC ads like Yahoo/Overture, Google Adwords, etc., and measuring the effectiveness of these ads as well as managing them for optimal ROI is very important. The web analytics tools to do this are called pay per click management (PPC management) tools.

The features of pay per click management tools vary greatly. Some provide tools for measuring the conversion rate of each advertisement (or keyword combination for search ads), or even the dollars or revenue or gross profit generated. This type of informaton can be extremely useful in deciding whether to continue a specific ad or how much one can pay for that advertisement and still be profitable.

Bid management is another major function. Most PPC management tools that are used for keyword ads let the advertiser control the bid price in many ways - they may adjust bids, for example, to control the desired position (e.g., no less than second place). Control factors include time of day (bid lower or not at all when most clicks will come from the wrong parts of the world), the behavior of other advertisers, and other factors.

Advertisers with very tiny spending on pay per click ads probably don't need PPC management; as soon as expenses start growing, though, the right PPC tools will control expenses and help maximize return on investment.

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