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  • 6. Consider Using Paid Advertising
  • The PPC Model

The PPC Model

HIGHLIGHTS:
  • Pay Per Click (PPC) advertising is the most popular form of paid advertising and is what we recommend starting out with

  • When you create a PPC ad, you get to specify:

    • the ad's headline text
    • the ad's sub-text (content)
    • the exact page customers will "land" on when they click the ad (i.e. the landing page)
    • the exact search phrase(s) your ad is displayed for
    • the maximum amount you're willing to spend per click

  • Following are the key PPC terms you should be familiar with:

    • PPC bid - the amount you agree to pay for each click
    • Impressions - the number of times your ad was displayed on a page a potential customer visited
    • Clicks - the number of times a customer actually clicked on your ad and came to your site
    • Click-Through Rate (CTR) - the percentage of impressions that resulted in clicks
    • Conversions - the number of actual sales resulting from PPC advertising
    • Cost Per Conversion - the amount you spend, on average, to generate 1 sale (i.e. 1 conversion)

  • Example:

    • PPC bid = $0.50
    • Impressions = 1,000
    • Clicks = 40
    • CTR = 4.00% (1,000 impressions / 40 clicks)
    • Conversions = 1
    • Cost Per Conversion = $20.00 (40 clicks @ $0.50 per click / 1 conversion)

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