An Introduction to Pay Per Click (PPC) - 2012 Edition
Once you start to receive traffic (clicks) to your campaigns, it is time to start considering the analysis and refinement of your campaign.. If you are receiving traffic then you need to keep an eye on how much you are spending. There are a few rules that you can follow to make sure that you do not waste a bunch of money on campaigns that aren't performing well.
Let's assume that you are selling a product that costs $50.00 and your commission is 50%. So, you'll get $25 for every sale that you generate. The $25 that you will make on each commission is important because if you have spent more than $25 in click charges and haven't made a sale yet, then it's time to take a look at your ads to see what is happening.
Perhaps your ad copy isn't targeted enough, or you are spending money on keywords that just simply don't convert. It's at this point where you need to change things within your ad campaign and either make the decision to drop the campaign or make improvements to it.
So, if you have not made ONE SALE by the time you have reached ONE SALES WORTH OF AD SPEND, it is time to look seriously at what you are doing.
You obviously want to create your campaigns with quality to begin with, but once you obtain some data it will be much easier to refine your campaign and make changes to improve it. If you make sales before your spending reaches the commission of one sale, then great! You're in the plus already! If you don't make sales before this point you need to change your campaign.
I typically set up Google Analytics on all of my sites so I can fully comprehend the traffic that I am getting an analyze their behavior. Google Analytics is free and it is the ultimate tool for analysis (you should not have to pay for website analysis).
To get your Google Analytics account, you simply need a Google account.
Sign-up to Google Analytics
Then you will need to install it. If you are using Wordpress, there are many plugins that can help with this. To run an effective campaign, you need to invest some time into understanding what people are doing on your site, where they are leaving, what keywords they are coming through, and how long the average visitors is spending on your page.