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June 3rd, 2007, 07:10 AM #1How do they do it?
I started a small google adword compaign recently with a small amount per day. Because I was using a small amount, my ads disappeared quickly each day. There are quite a few competitors using the same keywords in their campaings. I noticed that 2 of these competitors have their ads running 24x7. For my ads to get on the first page, I had to bid somewhere around $0.52 per click. One of these competitors is always listed in the yellow sponsored section at the top, which I am not even sure how you get in there. At $0.52 per click, I wonder hey they can run their ads 24x7. Their daily campaing budgett must be huge. My hats off to them.
June 3rd, 2007, 07:32 AM #2
- Join Date
- May 31st, 2006
- Houston TX
What is your product? Are you a merchant or affiliate?
You can look at PPC in two way.
1) For a profit generating tool.
Meaning, your product avg sale is $100. Net profit margin of let's say $30. Technically, you can spend $30 on marketing but you want to do spend less than that as anything less is a net profit. I think that is what you are doing as you have a budget/limit. You do not have the expenses exceeding the profit margin. Note that ad display content on the PPC and site conversion is critical.
2) To build equity
If they are looking to drive traffic to their site and harvest a contact so that you are able to remarket to the person in the near future. Even if they make a sale and subsidize to make the first sale, they try to make it back through email marketing, catalogs, etc. They look at it from the average lifetime value of a customer.
How might they be paying more than $0.52 and still be viable.
-Their site is converting higher than yours. 0.5% makes a huge difference is you account for volume.
-Their ad is more targeted. Look at their display ad and landing page. Learn from them.
-They have a lower cost production. If you are a merchant, cost of the goods is lower. If you are an affiliate, they might be in China or another country. You need to make $1 per sale, they need to make $0.25 because of the USD conversion rate.
-In some of the positions that I work for, we had PPC campaigns and some of the keywords are basically a loss leader. We see red ink for that category but we are still there as other categories will make up for it.
-They have a PPC guru that have no idea what are they doing
-Or they are looking at it from a lifetime value of a customer.
June 3rd, 2007, 07:39 AM #3
We are all affiliates with coupon related websites.
June 3rd, 2007, 08:44 AM #4
are they collecting any email addresses? are you?Ma, where the beer? :escape:
June 3rd, 2007, 08:56 AM #5Originally Posted by ske9963
June 3rd, 2007, 11:54 AM #6
Good ppc is tightly focused and controlled to only show your ads to exactly the searchers that will respond to it. Since coupon traffic is very specific, it's some of the easiest ppc to do. It's a lot of labor to keep it updated for sure (because of variety and constant change), but the ads, keywords and all that are very easy to target on precise keywords that people are searching for. Aim with a scope, sell the shotgun.
June 3rd, 2007, 05:36 PM #7Originally Posted by Donuts
June 4th, 2007, 11:40 AM #8
Another thing to keep in mind is Google has some kind of relationship between your daily budget and your CPC. Roughly speaking, if you spend more with adwords, your CPC will go down. Maybe they just are spending more money than you.
June 4th, 2007, 11:56 AM #9Originally Posted by MINDsprinter
June 4th, 2007, 12:08 PM #10I don't believe this to be true at all.