07-26-2006, 10:13 AM
3 part article:
full article: http://auctionbytes.com/cab/abu/y206/m07/abu0171/s03
full article: http://auctionbytes.com/cab/abu/y206/m07/abu0171/s04
Quote:PPC advertising has a number of advantages:
  * It's very quick. You can start getting results from the search engines in a day or two (in theory, a few hours, but in most cases it takes a little longer to get everything sorted out).
  * It's reliable. Using PPC to get traffic to your site is very reliable. You can generate a lot of traffic, and always appear for appropriate searches in the major search engines . . . if you're willing to pay enough.
  * It's easy to measure. You can see just how much traffic you're getting, and even figure out how much of the traffic turns into business ...
full article: http://auctionbytes.com/cab/abu/y206/m07/abu0171/s03
Quote:Understanding Conversion Ratio, Click Value, and ROI
There's one huge disadvantage to PPC ads, though . . . they cost money. Sometimes a lot of money. Often, in fact, so much money that you will lose money if you buy PPC ads! In order to use PPC, you really must understand Conversion Ratio, Breakeven Click Value, and Return on Investment (ROI):
  * Conversion Ratio The proportion of visitors to your site who buy from you. This is the foundation of any click-value or ROI calculation.
  * Breakeven Click Value The "breakeven" value of a click is the maximum sum you can pay for a click and not lose money. Of course, you want to pay as little as possible, but there's a point at which a click doesn't make you money and doesn't lose you money. If you go over the price, however, you start losing.
  * Return on Investment The amount of money you make after investing in advertising, typically expressed in terms of the sum returned for every dollar invested. If you pay $1,000 for ads, and make a profit of $10,000, your ROI is $10 per $1 invested.
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full article: http://auctionbytes.com/cab/abu/y206/m07/abu0171/s04