Paid Search Advertising For Content Providers

August 28, 2010 by Dorian
Filed under: PPC 

If you’re a content provider, it’s about time that you know how to determine how much to bid when running a paid search advertising campaign. If you’re not into math, then you should be by now if you want a positive return of investment to come your way.

To decide how much to bid, the first thing you should do is to find out the revenue per visit. You need to determine the value of the page by determining the average CPM of the ads shown on the site. Take the CPM and multiply it by the number of adverts per page and divide by a thousand. This gives you the average revenue per page. After that, multiply the average revenue per page by the average number of pages spent each visit. Refer to the equation to give you a clearer picture of this calculation.

CPM x Ads Per Page

——————– x Pages per Visit = Revenue per Visit

1000

The result is your expected revenue from a visit, or how much you expect to make per visitor. For every keyword, this must be your maximum bid.

With the value of a visit, you can now determine what keywords to bid from the content provided. There are tools and software to help you determine which words are more searched than others. To bid half the amount that you have determined above is a good starting point.

Once your PPC campaign is up and running, it’s crucial that you regularly check the results and employ] more advanced bid analysis. Just a piece of advice, separately track those individuals coming from your paid campaign and from those coming through natural or organic search results so you’ll have a customized bid value for each keyword. If you have understood what a PPC visitor would do, you can begin tailoring your bids to generate either a higher returns per visitor at a lower volume or generate more volume at a lower return.

Therefore, content based providers should start examining the value of every visitor to their site. It just needs careful tracking and bid analysis to make a PPC campaign profitable yet cost-effective. After you have launched your initial campaign, it would not hurt to consult a PPC advertising services provider to initiate more advance bidding concepts to gain a much better return of investment.