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Make the most of a $1000 budget

Effectiveness of strategy

         

brotherhood of LAN

8:52 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Purely theoretical, but may be reality soon. I am wondering what you would personally do with a $1000 budget for the PPC engines.

If $1000 is not enough, feel free to bump it up to a reasonable level.

I wouldnt mind proposed strategies to include directory payments, pay for spidering etc if applicable here

Thanks!

john316

9:07 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



We hit that question pretty hard right here.

[webmasterworld.com...]

brotherhood of LAN

9:13 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Great. Either this thread can get wiped or we can diversify on the last thread :)

It seems as time goes by on the net, the shift of traffic referrals is slowly moving towards PPC engines and paid listings....

Even more emphasis will be placed on the allocation of X amount of money into X amount of places. Its about time I read up on PPC :)

Mike_Mackin

9:23 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'll cover just PPC because that is the forum you posted to before it was moved.
[move pending]

This is only one approach!

$250 budget should do it to start ie: test your KW set against desired ROI assuming bids are say 50 cents or below. Don't start with the core KW which in most cases might be the most expensive.

Example: found in another thread today.
casino @ $12 or online gambling @ $23
Choose a niche like online sports book wagering [overture.com]

$100 Overture at #10 position and work your way up
$100 Adwords/select if cost is at or below Overture #3 position
$50 Findwhat at #10 position and work your way up

Play with title & desc to limit tire kickers.

Once you get back $250 PLUS , you do it again.
If your site sells it becomes a self funding proposition.

If a crazy bidder starts to effect the rankings just wait him/her out until they drop out.

Play it safe until you become comforable with the programs.
If it doesn't work for your industry or site, DROP it.

brotherhood of LAN

9:30 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Mike, looking at your suggestions there is definitely more than a hint of strategy ;)

Thats what Im getting at, as did the previous thread. Im sure some of you have very advanced formulas to work out your returns from keywords etc, and im also sure you wouldnt be wanting to post them either :)

Perhaps we would work round this in some way. Obviously ROI, cost of keyword, SERP positions are different in everyones circumstances, but are there any rules of thumb we should be looking at in regards to PPC and theres a budget for it?

Mike_Mackin

9:37 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Example:

If you sell STUFF for $100 and wish to net $20 per sale, test it.

brotherhood of LAN

9:44 pm on Mar 26, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Yes Mike I realise that is the basics of it all ;)

But surely there must be trends etc that you can base your judgement on, i.e. ROI for a particular product, or similar products etc etc

Brett_Tabke

5:42 am on Mar 28, 2002 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



> $1000 budget

A- I'd do something radical and spend it on .05cent banners with some banner broker.
B- I'd go to every targeted site in my niche and offer $3cpm for banners or $2 for text links.
C- I'd find a trade magazine in my sector and buy one of those micro classified ads in the back.
D- I'd use any remaining on directory submissions that cost.

Mardi_Gras

2:09 pm on Mar 28, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



A- I'd do something radical and spend it on .05cent banners with some banner broker.

Wow - I hate to question the master on my second post :)

Brett - for those of us who are not competing for $20 terms, but rather sub-$1 terms and often sub .50 terms, would you give the same advice about banner ads? What (in your experience) is the typical cost per visitor on a .05 banner ad?

Great site - thanks for the opportunity to participate.

Mardi_Gras = Don Cooper

buckworks

3:07 pm on Mar 28, 2002 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



I have done a fair bit of advertising in PPC search engines as an affiliate. The biggest thing you need to know for a successful PPC campaign is this:

How much is your average new visitor worth to your bottom line?

For example, if on average it took a thousand visitors to put two hundred dollars profit in your pocket, each new visitor would be worth twenty cents. Set your bidding limit somewhere below that to ensure a profit margin on your new traffic. I like to cap my bids at about half the "visitor value."

Bid on every relevant term you can think of, the more the better, but stay within the bidding limit that you calculated makes sense for YOU. Ignore the competition. There is no advantage to bidding high to rank high if the traffic costs you more than it earns. The one time it might make sense to pay more for that first visit would be if you have a product or service that lends itself to repeat business.

If you set a bidding limit that is sustainable for you, your PPC campaign can be left in place while you go to work on other things.

brotherhood of LAN

8:56 pm on Mar 28, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Buckworks thanks for that its something thats more or less what I was looking for amongst other things ;)

I'd hate to question Brett too but I have no idea of the average "visitor value" for my site so dont know if those more expensive banners would be cost effective considering CTR is pretty poor for the banners that i have encountered

alexg0182

11:45 pm on Apr 10, 2002 (gmt 0)



I think 1000 is great to start out with.

I would go with of course as many free listings as you can.

Findwhat Top 3 placements
Ah-ha Top 3 placements with logolinks
Kanoodle
And Overture is great but depends on your keywords. Like if you have gambling you will go through that 1000 in less then a day.

That right there wouldnt be bad to start out with.

If this works for you try some tests on banners, do a small buy, and can normally tell with in two weeks if its going to work for you. But do keyword banners. Not run of site.