How To Run A Successful Pay Per Click Advertising Campaign

Pay per click advertising has been a common practice among website owners who hope to get more revenue from their websites. As the name implies, you simply get paid based on the number of times an ad in your webpage has been clicked by viewers. This revenue will either depend on a flat rate provided by an advertiser, or on a bid by two or more advertisers who want to make use of the ad space in your website, as determined by an automated auction. This type of advertising may be applied to ad spaces on your own website, or on spaces adjacent to search engine results. The type of ads placed adjacent to search engine results are displayed based on the keyword that was used in the query. So the ads that pop out in the allotted space will be related to the key word that was sought out using the search engine.

So how could we maximize the profits that we could garner from a pay per click advertising campaign? Steve DiPietro of e-commerce firm DiPietro Marketing group offers a few tips to guide would be participants in a pay per click ad campaign applicable for search engine queries.

  • Study your gross profit and compare it with your pay per click cost.

It is important to identify if your Pay Per Click (PPC) campaign is actually helping your sales or not. It takes more than looking at the improvement of sales and gross profit. Rather, it is also important that you include the cost of your PPC campaign to get a more realistic view of the progress of your business. If your PPC costs hit around $45.00 a month and you get a monthly gross profit of $23.00 per order, then you are paying more than you are actually earning. Many factors come into play with this, such as a low positioning of your ads due to your low bid, a low click through rate, meaning only a few people were accessing your ad, and low conversion rate, which means that only a few of those who access your ad are actually purchasing your product or service. It is important to take into consideration all of these factors to actually see if your campaign is actually helping or not. Once you are able to identify and compare your gross profit and PPC costs, then you can proceed to the next step.

  • Identify the ideal pay per click cost to bid.

Giving a well studied bid for your PPC campaign will help improve your sales and reduce your costs. If your average gross profit per order is $45.00 based on our previous example, then it would be safe to aim for a bid where your monthly conversion will be below your projected profit. This way, you are sure that from your current scheme you are not losing money on your ads.

In addition, here are some additional tips that may also benefit in your pay per click campaign:

  • Prioritize keywords where you can offer a low bid and yet produce good results. Studying keywords that are useful for your ads and at the same time have a low top bid (e.g. $0.10) can be a good investment for your PPC campaign. Prioritize these keywords so that you don’t have to invest too much on all possible keyword candidates. In cases where your keyword is not that useful for your product but has a high top bid, then it would be best not to prioritize that keyword.
  • Try flat rate pay per click campaigns through websites that are related to your product. You may opt to search for other thematic sites that fit your product. If your product is a sports drink, then you can look for sports themed sites wherein you can have your pay per click campaign for a flat rate. Flat rates can be high or low depending on the activity level on the site you are in collaboration with. But you can always negotiate for a lower rate by proposing a long-term contract or a high value one.


  • Improve your online ads. Your ads might not be as catchy as they look. Review how your ads are presented, and try to make them more eye catching. Improve the layout of your site, and the quality of your pictures if you are selling products. Include reviews, videos, and promos if possible, to hook your audience and hopefully have that steady flow of traffic for your site.


  • Utilize other low cost advertising schemes. This may not be a tip to make your PPC campaign improve, but exploring other means of advertising to help in making your product known will actually alleviate your reliance on your PPC campaign. Making more reader-friendly email ads is one means to increase the exposure of your product. If you have developed a loyal set of customers, you can offer them perks for endorsing you to others by word of mouth or referral. Other freelance entrepreneurs even utilize social networking sites by making their own accounts expand their network and promote their products online. The bottom line is, don’t rely on just one advertising strategy. Expand your repertoire and use other approaches.

Like any revenue producing endeavor, pay per click advertising is not just a simple structure to produce easy money. It is an advertising mechanism that can be very profitable if used under a well devised strategy or approach, constant improvement of your product and service, and the inclusion of other advertising models that can help expand your exposure.


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