The most effective method to develop a successful PPC campaign is by considering your profit margin. Lets say your average order is $100.00 with a profit margin of 20 percent. That leaves $20.00 profit for each order. With a one percent conversion rate you can expect one sale for 100 clicks. If you have $20 margin to play with for 100 visitors, your maximum CPC is twenty cents.
Revenue is another consideration for developing your PPC advertising. If your goal is to spend 10 percent of your revenue on PPC, your budget is $10.00 per every $100.00 revenue.
Writing Your Ad
Research the most effective keywords for every one of your ads. Avoid generic terms. Even though you are paying for each click, you are still competing with other advertisers. If you select the right keywords, you might get better results than a higher ranking ad with poorly selected keywords.
Study printed advertising materials as you write your PPC ads. Many techniques easily translate to online advertising. Pick up a magazine and study the wording within the ads. Experiment with some of the same words in your own ad. Embed keywords in your ad. Some of the search engines highlight...