How to become an Internet advertiser for $5.05 (but why you should spend more!)


Google AdWordsThanks to Google AdWords, it is possible to become an Internet advertiser for the incredibly low cost of $5.05 – provided you have a Web site, that is. All you have to do is to sign up for a Google AdWords account 
(there is an initial registration fee of $5.00). After you select your keywords, set the minimum spend per click to $0.05. You’ll serve your first ad – and get your first click – for a grand total of $5.05. Voila! You’re an Internet advertiser.

Of course, I’m simplifying things.

 You could technically be an Internet advertiser for that cost, but the real benefits of pay-per-click (PPC) advertising come with scale and conversion. If the # of clicks x cost-per-click = less than $ earned from conversion – you’re laughing all the way to the bank. In non-math terms, the more individuals you can get to click on your ad, at the lowest cost per click, who you then convert into customers… the more money you’re making.

The recently released IAB Internet Advertising Revenue Report analyzes the Internet advertising market for the first six months of 2007 and shows that approximately 50% of second-quarter revenues were priced on a performance basis, up from 47% reported for the second quarter of 2006. Companies are increasing spend on PPC (and other forms of performance-based) advertising programs because they are measurable.

So, while Google AdWords (and its PPC sibling Yahoo Search Marketing) are a low-cost way to enter the Internet advertising market, the companies that are making a serious impact – and significant profits – from PPC advertising are those that are willing to scale and that are able to convert their visitors to customers.

(By the way, if you are looking for a play-by-play of how to set up a Google AdWords account, there is a good post at the Tech Savvy Marketer.)

~ Red Burst ~ 

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