Being Top Of Cost Per Click Doesn’t Always Mean The Best Return On Investment For Your Company

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Being Top Of Cost Per Click Doesn’t Always Mean The Best Return On Investment For Your Company

Article by Ian Spencer

When any client, business, customer or website owner sets up their very first cost per click campaign, it is amazing how many people will just spend hundreds of pounds to be top. What many of the smaller cost per click users do not really understand is that being top of the cost per click listings, and therefore bidding the most, doesn’t always mean you are going to get the best returns for your investment.

It is important to think about the amount of money you are spending in relation to the amount of income a conversion from this click will cost. For example, if you are bidding £1 just to be top of the listings and only selling a product for £1.20, the margin is so small that your return on investment would be minimal. But, if you were spending 50p for the very same click, as you can easily see, the return on investment would be much higher and this is very achievable if you are prepared to work hard at your cost per click campaign.

Where the majority of the cost per click campaigns fail is trying to achieve the top spot, which often means competing against the major competitors who have a far higher marketing budget and can afford to bid far higher than most of the smaller bidders. By decreasing your bid and going for a middle position in the results, you are reducing the amount of click throughs you are going to achieve but you are also going to be spending less per click, which means if you achieve ten clicks at 50p each, you would only be getting 5 clicks for the same budget if you were bidding a pound per click, meaning double the clients for half the expenditure.

So, if you spent a daily budget of £5.00, you would get five clicks for being top, but ten clicks for being 5th, assuming there were that many people clicking that far down, which research and experience will tell you there most certainly is.

If you look at the list below, this is an example of how you can get a better return on your cost per click investment.

Position One – £1.50 Per ClickPosition Two – £1.30 Per ClickPosition Three – £1.10 Per ClickPosition Four – £1.00 Per ClickPosition Five – £0.75 Per ClickPosition Six – £0.50 Per Click

Even though position six will attract less click throughs, you will still achieve some, meaning that for EXACTLY the same search term, you will get traffic, and this is proven that if you are in the top six cost per click results, you can achieve a decent level of click throughs which just increases your return on investment.

Being top doesn’t always work for many smaller companies, and that is something must always be remembered.

About the Author

Ian Spencer works for Clear Web Services, a SEO Web Optimisation and Web Design company serving the Forest Of Dean, Gloucestershire and South Wales.

He has worked in the SEO and Internet Marketing world for many years, and working in partnership with another company has launched the new SEO business.