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whwytriright 12 5 Paid Search Myths
Th ere are yet a few key distinctions that should be noted from higher positions is oft en signifi cantly more than it is at
when comparing natural (organic) SEO and paid search. these lower positions. Keep in mind that depending on the
Natural SEO is a long term strategy. To do it right takes time, competitiveness of your market, entering at positions three
oft en many months. Paid search on the other hand can drive or four may even be tough, given your budget. Do the math
traffi c to your site in just a few hours. In general, the traf- to fi nd out the magic numbers you should target. In the end,
fi c that SEO drives to a site is more general and harder to you should be careful of trying to compete for that number
control or prep from the start. With paid search, you have one spot. Shoot for positions three to four write your ad copy
the ability to qualify traffi c from the start and alter those according to your objective, and measure what works best
qualifi cations at any moment, through changing your ad for your business.
text and landing page.
Conclusion
Th e ability to more eff ectively measure, change course,
and persuade potential buyers is a big reason I like including Ultimately, doing the math will help you determine if paid
paid search as a key element in any ecommerce marketing search is right for you. Th is article has hopefully put to rest any
plan. If you can control the mindset of the visitor starting at remaining thoughts you may have about taking advantage of
the very point in which they click your link, you have a far paid search as an advertising channel for your business. You
greater chance of converting them on the back end. can predict if it is worth your time if you know your:
Before closing this point, let me make one thing clear.
Margin per sale
Natural SEO traffi c can yield nice returns. Paid search can
as well. Both should be utilized in conjunction with each The average CPC in your niche
other, under any planned marketing campaign. Th e fact that
Your site’s conversion rate
one is cheaper than the other or yields bett er results is purely
dependant on the approach and planning.
To fi nd out whether the CPC is too high in your niche to meet
your budget and ROI, use the following calculation:
5) Going for The
Number One position
Break-even CPC =
Margin x Conversion Rate
is best. — False.
Depending on your budget and purpose (brand awareness You’ll also need to know the conversion rate it takes to break
for example), the number one position may or may not suit even. It can be calculated as follows:
your needs. Th e conversion rates from position one to say
Break-even Conversion Rate =
position 4/5 vary, depending on market demand and more.
Niche Avg CPC / Margin Per Sale
However, my experience has shown that shooting for a spot
near position three to four tends to yield nice conversion
results. Why? I suspect it is because the traffi c is more quali- Sure you want to turn profi t, not just break even, but if you
fi ed to buy. Th e theory is that if they read the fi rst three or can break even on your investment, you should be able to
so and are this far down the page, they know what they are optimize the campaign to improve those results without los-
looking for and haven’t found it in the fi rst few results. You ing any money. With this ability, you have a shot at profi ting
can capitalize on this by providing ad text that supports their on your PPC investment.
need and describes your product. Winning the click at this
Eric Leuenberger is an ecommerce conversion marketing expert and
point should result in more targeted traffi c that is further
author of a leading Ecommerce Optimization blog (www.zencart-
along within their buying cycle.
optimization.com). He coaches ecommerce store owners on how to
Th is option of targeting positions three through four also
increase their website sales through skillfully craft ed online paid
search advertising, targeted marketing strategies and website sales
works well for those with smaller budgets, because the CPC
strategies. He can be contacted at 1-877-481-2323.
Find this story in our complete article archive at: www.wholesalecentral.com/Wholesale–News
14 August 2009
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