By Gregg Forscher

There is more to know about pay per click advertising than meets the eye.

There are various parts. An impression is just how many people viewed your ad. A clickthrough are those who once they see your ad click on it and arrive at your website. CTR or clickthrough rate is a percentage of who took that extra step to click on your ad.

Most people have a budget and want to spend less than they receive in return from their site. That is why you want to know the CPC or average cost per click.

But what is this all about? You are in this business hopefully to draw a profit out of it. Right? Why else unless it is just your passion? So conversion is the main thing you are after and what they are in simple terms are people who signed up for something with you whether it be for a purchase or just signing something that puts them on your list as a potential client or lead.

There are some substatics one can use to help think with conversions such as the total conversions over a period of time,the conversion ratio which is how many people actually sign up or buy something once they have gone through to your ad and how much it is costing you for each conversion that you receive.

Your campaign should be geared around getting more people toclick on your ad and more people to go on from their to sign up once they have. This is where you can adjust your ad or adjust your site to see what is working for you. If you change something and your conversion ratio goes down, then change back or try
something new until you see a positive change in your conversion ratio statistic.

It is the landing page where people go when they click on your ad which determines whether they spend 2 seconds on your site or carry on viewing. This includes your sales pitch, your graphics, any audio or video you might have, etc.

It would be great if you could generate a 100 percent conversion rate, but this is the real world and a typical average may be somewhere around 3 percent, so the more traffic you can generate the more conversions you will get. It is simple mathematics.

You then have to be able to determine what is your cost for each conversion and what is your return on investment. This is where you will see if you are profiting from your efforts or not. There are tricks here as well to find keywords that do not cost you an arm and a leg but do provide you with the type of traffic that you desire. These keywords will be less competitive ones.

Like anything treat it as a game. Fiddle around with it until it is working for you and your return on investment is more than what you are spending. In this way as you grow you can continue to try other means to drive more traffic to your site and continue to promote your site. Good luck.

About The Author

Gregg Forscher founder of Discount Web Content Provider
offers fresh unique web content as well
tips to make your website more profitable.
http://discountwebcontentprovider.com

This entry was posted on Wednesday, December 10th, 2008 at 9:46 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.