Managing Your Bidding Strategy
Managing an effective pay per click campaign requires a combination of mathematics, intuition and efforts. Hence you should plan your bidding strategy by adjusting to the economics of your website.
The first question is to find an answer as to what your objective is. You should first define your objective before even starting the bidding strategy. So you should be able to gauge as to what results you want to achieve from your campaign. Next you should decide as to what action you want the visitor to pursue when he clicks on your ad. Your decision in ensuring high profit margins or selling more products also becomes vital.
The next question is to find out an answer to your objective’s value. For example if you want to start am email marketing campaign where you will send mail to thousands of people you should be able to gauge as to how many minimum mails will generate one customer. Hence if you spend $25 in generating 50 mails and get a response then the objective value is 25/50 = 50 cents. You should also be able to calculate the maximum bid per visitor in order to maintain a break even with the value of your objective. You can calculate the current conversion rate by dividing the number of actions by the number of visitors in a specific period of time.
Also find out as to what type of visitors you want to attract to your website. Hence if your objective is to gain more sales then you should consider as to how your customers will look for a particular product or service and how they will search for it. Also keep a tab on the competition regularly. Try to find out how your competitor positions himself in the market. Try to find out if the competitor is a big budget competitor who is capable of doing high bids to attain a monopoly for the first position. Even in case you find a big budget competitor you can jam their bid by bidding one cent less than his maximum bid as a result of which the competitor will have to pay an extreme price to gain the first or second spot on the rankings page.
In case you have several competitors fighting for the top spot you can try to attain the fourth to seventh position in rankings page. You should constantly make changes to your strategy depending on the changes in the competition like the competitors’ behavior as well as varying bid positions, keywords used and performance metrics. Last but not the least suggestion would be to look for tools like Pay Per Click Tool Management Software that can make your pay per click easier and also automatic in many cases. This is because managing your pay per click advertising campaign can be time consuming as well as cost you many dollars. Hence software like the one mentioned above can save you a lot of time and money and at the same time make your campaign very successful.
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