Google Cost Per Impression (CPM)

Google cost per impression is paying per 1,000 displays of your ad. The equation is M=1,000 impressions, (M is the Roman numeral for 1,000). So if you are paying $5 per 1,000 impressions and you get 10 clicks, you are paying $.50 cents per click, a very good price for a visitor. The problem with paying per impression is what if you get 10,000 impressions and only 2 clicks? Now you paid $25 dollars per click, an unattractive prospect for most.

When dabbling in the world of CPM your ads and marketing campaign (along with landing page design and layout) have to be perfectly optimized to get the most out of your money. CPM advertising is done mostly by large corporations that have professionals who know how to fully optimize ad campaigns and reap the benefit of cost per impression advertising. If you’re doing placement targeted advertising it is imperative to make sure that your ad is above the fold. If your ad is below the fold and 1,000 people visit that website and don’t scroll down, you still pay for the 1,000 impressions and no one has even seen your ad. When we set up CPM advertising we study each individual website that the ad will be placed on. Make sure that the ad is placed above the fold and is specifically targeted to your product or service. In most cases the ad must be flash so that it gets the attention of the user on the website.

The benefit to doing CPM advertising is to reduce your cost per click. In the event you must bid $1.50 to get your banner ad on a website or $10 per impression for the same placement, you are gambling that you will get at least nine clicks or more on the cost per impression campaign to make paying the CPM price reasonable. Think of it like this. You can invest money into a trust account knowing exactly what your interest rate and return on investment will be. On the other hand you could decide to invest your money in the commodities or stock market where you may or may not make more money.  We do not recommend that inexperienced users develop a CPM campaign on their own.  Remember this CPM=Gambling.

Google Cost Per Conversion (CPV)

This is only available through Google and requires a minimum of 50 conversions a month before you can qualify for this bid.  At that time you can review your costs and decide whether or not it is cost effective to go this route.  This is recommended for large advertising budgets because the business or company advertising can determine exactly how much is spent per sale.

1.    Google Placement Advertising; Google placement advertising is a great advertising instrument to use. When developing an ad campaign using Google placement you can search for your target market in these four ways. Remember you have the option to do CPC (cost per click) or CPM (cost per impression) when setting up a placement targeted campaign.
i)    Browse Categories; where you can pick from a large list of categories and sub categories to choose the specific target you are seeking. You then can view and choose from a list of websites in which you want to place your advertisement.
ii)    Describe Topics; here you can type in topics. Google then searches for websites that match the topic you listed in the search box.  You can then do the same thing and view the websites and place your ad where you would like.
iii)    List URL’s; you actually type in URL’s to see if they are available under the Google AdWords system.  Let’s say you were browsing around one day and you stumbled across a website that would be perfect for one of your ads.  You can then use this tool to find out if you can add this website to one of your ad groups in order to place one of your ads on the website.
iv)    Select Demographics; finally you can search for a specific demographic that is the buyer for your product or service.  You can search by gender, age, and income.  Once you have picked the specifics you are after a broad range of websites meeting that demographic will appear from you to choose from.  Again you choose multiple websites and have now specifically targeted your ad campaign.

When optimizing a placement targeted campaign you want to make sure that your text/graphic/flash ads match the content on the page the user lands on when clicking on your ad.  When optimizing your placement targeted campaign you will find that during treatment studies some of the websites are displaying your ads and others aren’t.  The reason for this is that in most cases when you set up a placement targeted campaign you set up a bid (what you are willing to pay (PPC or CPM) that did not meet the criteria for that page, or you were out bid by another advertiser.  For example, if you have picked 20 websites to run your ad and only 5 of the websites are running your ad, then you need to up the bid on the other 15 websites.  Through tedious treatments and studies ranging out as long as 90 days you will finally find yourself with a fully optimized placement targeted campaign that is helping you and your business succeed. You can make your campaign as large as you would like.

Yahoo Advertising

Yahoo is one of the oldest search engines out there and was the big giant before Google came into the market. Yahoo is a very effective search engine and has lots of faithful users.  Accounting for an average of 27% of the searches worldwide means something, Yahoo is an effective advertising tool for businesses worldwide. Yahoo offers ad performance data where you can view and see how effective your ads are. You can see how many impressions they are getting and how many clicks you are receiving due to the impressions. Yahoo pay per click tutorials are a great way to learn about the Yahoo cost per click system and will help the average person or business get started with yahoo the right way. For all new users Yahoo also offers a pamphlet that they mail to you to your residence that has all the information one may need to use yahoo advertising effectively.

Yahoo and Bing.com recently merged.  They are hoping to take over the search giant Google. Good luck with that I say.  In my opinion it is going to be very difficult to take out Google. They have too many good products and services and people really like the search results they get when using Google.  I will follow this new merging of search engines and report my findings soon…

Google Placement Advertising

Google placement advertising is a great advertising instrument to use. When developing an ad campaign using Google placement you can search for your target market in these four ways. Remember you have the option to do CPC (cost per click) or CPM (cost per impression) when setting up a placement targeted campaign.
i)    Browse Categories; where you can pick from a large list of categories and sub categories to choose the specific target you are seeking. You then can view and choose from a list of websites in which you want to place your advertisement.
ii)    Describe Topics; here you can type in topics. Google then searches for websites that match the topic you listed in the search box.  You can then do the same thing and view the websites and place your ad where you would like.
iii)    List URL’s; you actually type in URL’s to see if they are available under the Google AdWords system.  Let’s say you were browsing around one day and you stumbled across a website that would be perfect for one of your ads.  You can then use this tool to find out if you can add this website to one of your ad groups in order to place one of your ads on the website.
iv)    Select Demographics; finally you can search for a specific demographic that is the buyer for your product or service.  You can search by gender, age, and income.  Once you have picked the specifics you are after a broad range of websites meeting that demographic will appear from you to choose from.  Again you choose multiple websites and have now specifically targeted your ad campaign.

Google Keyword Search & CPC

Everyone knows about keyword search advertising.  It is the largest form of paid advertising online. For instance, if you’re a website designer you want your ad to show up when people use Google for example and their searching for website design among the other ads. If your ad is not optimized correctly and you’re getting a bad click through rate then Google will penalize you and drive up your cost per click.

Think of it like this. If you were offering advertising space and you only get paid when someone clicks on the ad would you want an ad up there that is not getting any clicks?  Of course not. This is why Google can be good or bad for your keyword search advertising campaign. If you fully optimize your ad campaign so that your keywords match your ad then you will get more clicks because your ad says specifically (to a degree) what the person typed in the search bar. If your keywords do not match your ad and Google gives you a bad history you can end up with inactive keywords where you must bid at least $5 to $10 per click. Google recognizes when people or businesses pay attention to their ad campaign and optimize them to receive better results. When you are getting a high impressions to click through ratio Google may only charge you .30 per click. Google would rather charge you 10 times at $.30 per click than 1 time at $2 per click. A fully optimized ad campaign saves you time and money on your advertising.

Google, Yahoo, and MSN control over 90% of the search market. Google taking an average of 59%, Yahoo at about 27%, and MSN at an average of 7% don’t leave much for the other search engines. Pricing for advertising with these search engine giants is similar to the traffic they receive. You will find that it is more expensive to advertise with Google than it is Yahoo, and more expensive to advertise with Yahoo than it is MSN. Here are the totals for Keyword Search Advertising

Google 59%, Yahoo 27%, MSN 7%

MSN (Bing.com) and Yahoo recently merged.  I will be discussing this further in this section of the blog.

BING AND YAHOO MERGE

Bing and Yahoo merged and the founder of search walked away.  Politics or just the want to catch up with Google? Which one is it?  I’m encouraging all viewers of this post to interact and share their knowledge.  In my opinion you cannot beat Google.  They have just done too much and created too many good products and for free at that.  Everyone else tries to copy and mimic them while they strive for the unknown.  Google Wave is a new product that I like quite a bit personally.  I’ve been using it for a week and I love the simplicity and organization.  The only downfall is that I cannot use it with everyone cause Google has limited the amount of users.  I will probably be moving this post over to a new section in our blog soon.  We will be adding another section soon.

Thanks and I look forward to discussing this with those that want to discuss.

Google Advertising

Google has the most options and internet traffic when it comes to online advertising. Google has several key features that help a person manage, optimize, and otherwise succeed with an online advertising campaign. As mentioned in other articles Google allows a person or business to advertise a campaign to the search engines, content network and placement (link to other articles above) targeted areas. You can separate these features or combine them together.  Google allows graphic advertising through the content network and all placement advertising as well. Google analytics is a great feature that allows you to traffic the amount of traffic your website generates. You will receive information such as, visitors, page views, time the user spent on your site, see where your traffic is being generated from, a graph with day by day stats, and much more. With Google you can also track your ad campaigns and groups by reviewing the amount of impressions all the way through to how many clicks and conversions your ad campaign is receiving. If you are receiving over 200 conversions per month you also have the option to bid per conversion which is a complete new feature only offered by Google at this time. Google has more tools for their AdWords account than any other search engine, and of course they should, they are the biggest giant out there.

Getting the most out of your Internet Ad Campaigns

If your ad campaign is not optimized and has a clear call to action that increases conversions and overall ROI then you are losing both money and opportunity. When we say optimized we mean that the content of the ad and the page that the ad takes the user to are completely matched. Full marketing optimization is important because having a user actually interact with your website rather than bounce (leave quickly) has a direct impact on the conversion rate of your traffic. Treatment studies are done on a weekly/biweekly/monthly (varies depending on the ad campaign) basis to make subtle optimization changes to enhance overall conversions received through your ad campaign. Making even a small change, such as like the color of your submit button on a form, or where in your website you are presenting your products and services, can make a big difference and lead to higher conversion rates.  Below is a brief introduction of each of the elements that contribute to a successful ad campaign

CPC (commonly known as cost per click or pay per click):  Cost per Click is an ad campaign where the advertiser only pays for an advertisement if the prospect clicks on the ad thus reaching the page in which the advertiser is advertising.  CPC can be applied to both Keyword searching and placement targeted advertising. Why is cost per click effective?  Running a campaign on a cost per click basis can be effective because the advertiser only has to pay for their ad if the user actually clicks on it (thus the term cost per click or pay per click).  This form of advertising is available through all search engines, Google, Yahoo, MSN, etc…
i)    A good example on how to effectively use CPC is to figure out how many clicks it takes to get a conversion.
ii)    Figure out the amount of money it takes to get a conversions.
iii)    Then subtract your ad campaign costs from your Gross profit.

Why is it so important to optimize your ad campaign? Imagine if you’re getting a 2% conversion rate and you’re spending $1 per click. For every $100 dollars in advertising you’re getting two sales.  If your sales price is $50 dollars per product you’re just breaking even, and breaking even is not a good place to be for a business venture. Now imagine if you fully optimize your campaign and you receive a 6% conversion rate. Now you’re bringing in $300 dollars for every $100 dollars spent in advertising. You’re return on investment is 200%, a much more attractive business scenario

MSN Advertising

MSN is the smallest of the three giants but still receives enough traffic to handle all of your search needs. When advertising with MSN AdCenter you will notice that they are very professional, easy to contact, and respond very well with prompt customer service and support. MSN searches are very direct for the most part and receive high conversions rates. The MSN dashboard allows an advertiser to see all the details of a campaign or ad group at any time.  Like Google you can track conversions along with clicks and impressions with MSN. These features are very resourceful and we highly recommend using Adcenter for your advertising needs.

MSN (Bing.com) recently merged with Yahoo.  To keep informed about this story please visit this section of the blog.