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How to Lower PPC Bids and Gain Traffic

written by John Chow on November 30, 2007

The Ultimate Online Profit Model

This post was guest blogged by Mr. Gary Lee, an Internet marketer for those who care about Internet marketing.

The internet provides a unique way to target certain demographics and learn how they react to varying types of marketing campaigns. Search engine marketing adds to the marketing efforts by providing real numbers that can be measured and used to make important decisions about the campaign. In this summary, we will go over the process of incorporating a pay per click campaign into your company marketing efforts. What makes this a special case is that there is a two-step marketing campaign to make the sale: Click to Lead & Lead to Sale.

1) Generate a list of keywords – Use Google Analytics to see what keywords are being used to find your site and then use services like Google Keyword generator and WordTracker ($15/wk) to generate a list of keywords based off your Analytic keywords. There are many more word generators, but stick with these first to get a better understanding of how they work. An evil method of finding good keywords is to check your competitors metatag keywords and also a service called which does a sort of reverse analysis of what keywords people use to search certain sites.

2) Group Keywords – Grouping keywords into the appropriate ad group will ensure a targeted marketing effort by allowing us to create the right ad creative. The most important aspect to grasp when grouping keywords is to make sure the keywords are grouped around the same general root word. Search Volume is also taken into account when grouping so that high performing keywords are not affected by low performing ones.

3) landing Page Conversion Rate – The higher it is, the higher CPC we can tolerate. That’s the general rule when it comes to landing page if you’re lead to sales conversion rate is pretty stable. Optimizing your landing page is something that should always be done with A/B testing and one great tool to use is Google’s web optimizer, which spreads out an equal amount of impressions for different variations of your homepage so you can get a good honest look at which page performs the best. Your ultimate goal is create high converting landing pages for each ad group you have.

4) Lead to Sales Conversion Rate – Again, the higher it is, the higher CPC we can tolerate. Every business is different and there are a varying amount of sales methods from selling them online to selling them on the phone. No matter which way you do it, you must track your conversion rates so that you can make the proper decisions in your PPC campaigns.

5) Ad Copy – The is where testing is the most important. Assuming you already have a high quality score which affects the placement of your ad, the ad creative is the actual bait that catches people’s eyes. The ad creative should contain most of the keywords of the ad group in the headline and the body. This is a great way to check your ad grouping skills.

6) Quality Score – A quality score is the overall grade search engines make of your efforts. Different search engines have different names for their quality scoring, so don’t be too distracted by the different names. If you’ve done everything correctly above, then your quality score will reflect your hard work and you will be rewarded with lower bids for higher rankings. An ad creative with a lower bid, but higher quality score can still rank higher than an ad creative with a higher bid, but lower quality score:

Example: All Advertisers with the Same Quality Score


Example: Advertisers with Different Quality Scores


f your quality score is higher than the bid right above you, what Google and Yahoo does is take the max bid of the person above you and divides the bid in half. They then add one cent to it and if our max bid falls within that range, we get a higher ranking.

Criteria that must be met to achieve Optimum Quality Score

  • Expected performance based on search engine algorithms
  • Historical Data Performance – Basically, the higher the CTR, the better your quality score will be.
  • Conversion rates of landing pages – Search engines want to provide users the best possible results so a high converting page shows a lot in proving relevance. A high converting landing page is a win-win-win situation for the search engine, publisher and consumer. There are those in the school of thought that Google does not take conversion rates into account, but it can’t hurt to assume that they do.
  • Something to keep in mind is Yahoo and Google’s core search engine marketing business models depend on quality search results. Placing ads that have the highest click through rates are in their best interest in order to maximize their revenues.

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Chris Jacobson November 30, 2007 at 12:41 pm

Good post Gary. I always enjoy reading your blog.

Pedro November 30, 2007 at 12:48 pm

Yes! me too. I like this blog and i am reading it very often!

Gary Lee November 30, 2007 at 2:30 pm

thanks for reading guys . . . . hope to see you around again!

Secure Loan December 2, 2007 at 10:46 am

nice to know you gary…good post…

Affiliate Unleashed November 30, 2007 at 2:52 pm

This was a great post. :)

Maggie B November 30, 2007 at 1:29 pm

The information provided will be very useful once I get my blog up and running….Thanks

Joe November 30, 2007 at 1:47 pm

PPC Marketing is definitely not my forte… but everyone keeps writing about it. It makes me want to try it. Then again, I think I’d need to establish myself more before PPC comes into play.

SEO Optimization November 30, 2007 at 1:57 pm

If one day you decide trying, make sure to learn how to limit how much you are willing to spend , it is easy for a newbie to burn a good amount of money for nothing (i.e. no conversation and wasting money on clicks from irrelevant sites or sites that don’t send quality traffic).

Anyway Greg’s post is very well written and highlights some important parts of PPC marketing and running a PPC campaign

Gary Lee November 30, 2007 at 3:48 pm

who’s greg? :grin:

Joshua November 30, 2007 at 6:32 pm

Greg from, obviously :twisted:

Gary Lee November 30, 2007 at 11:06 pm

hahaha . he’s gonna love that comment!

Manik @ WebCosmo November 30, 2007 at 1:49 pm

More like a 101 course. Liked the Quality Score part though.

Gary Lee November 30, 2007 at 4:23 pm

yes . . it is very elementary . . . but you must learn to walk before you can run . . . nature’s laws, not mine . . . ;)

Secure Loan December 2, 2007 at 10:48 am

you make me thinking… :idea: :idea:

Gerri November 30, 2007 at 1:59 pm

Very true, this is a good post. I need to learn a lot more about PPC marketing. It can only be a good thing right?

Affiliate Unleashed November 30, 2007 at 2:53 pm

Unless you lose a lot of money :P

Israel November 30, 2007 at 2:25 pm

thanks for the informative post.

Start Blogging November 30, 2007 at 2:50 pm

Great post especially in conjunction with the arbitrage post a couple days ago.

Affiliate Unleashed November 30, 2007 at 2:53 pm

Yea This was a great follow up type post to that.

Gary Lee November 30, 2007 at 3:00 pm

I was writing this article for my blog when I noticed John’s arbitrage article . . . thought it would be a good follow up as well . . . if you guys have any questions, please feel free to just come by and let me know

Mike Huang November 30, 2007 at 3:47 pm

What a great post by Gary. I recently started blogging for my first time and I pretty much don’t understand this at all. Hopefully I can learn something from everyone.


Advice Network Writing contest November 30, 2007 at 3:55 pm

Great stuff. My other favorite PPC tip, analyze conversion by time of day and day of week, then send more on times that convert well, and less on times that don’t do as well.

Gary Lee November 30, 2007 at 4:26 pm

and it’s also necessary to take into account buying trends by the time of the year . . .

Etienne Teo November 30, 2007 at 6:37 pm

Gary, that was a insightful post, i appreciate that. thanks!

johnCard November 30, 2007 at 7:19 pm

we tryed and doesn’t work, though u should know.

Etienne Teo December 2, 2007 at 4:16 pm

I thought it worked pretty well with seodigger but of course some don;t

Money Blue Book November 30, 2007 at 9:29 pm

Is there a site that lists high paying keywords?

Gary Lee December 1, 2007 at 7:25 am

ya . . . mine :lol: . . . i listed the top 600 paying keywords some time last month. . . . come check it out . . should be under my “Top Posts” section

Secure Loan December 2, 2007 at 10:54 am

thanks for the list… :lol: :lol:

Affiliate Confession December 1, 2007 at 8:59 pm

One of these days I will figure out the PPC game. I have used Analytics to bid on my top keywords on Yahoo SM.

hectril December 16, 2007 at 5:43 pm

Great Post Gary,

I like your summarize idea it gives me a lot of insights about PPC and to increase traffic. Have to ask you though, does this also goes with adwords strategy?