4 {{ upvoteCount | shortNum }}
4 {{ upvoteCount | shortNum }}

PPC Keyword Research - newbie question

by erikme
4 replies
  • PPC/SEM
    • |
I'm a newbie in the field of PPC - setting my first campaign on Bing.

What I don't get is why you need to make keyword list for your adwords/bing campaign.

Why not focus on one keywords no matter what its search volume is (were paying for clicks here).

So for example, If I'm selling treadmills, why not focus solely on cheap long tail keywords like "best treadmills for sale" ? (if its CPC is reasonable) or if your selling dumbbells that focus only on "best dumbbells on the market"

So the traffic will be slower, and it will take more time for conversions, but the ROI will be higher...

Thanks,
Erik
#keyword #newbie #ppc #question #research
  • Profile picture of the author LucidWebMarketing
    You could focus on the longer tail. This is at the expense of lower search volumes of course. It's also a myth that longer tails are cheaper. They can be but not tremendously so.

    You also are not maximizing your revenues. Say there's 10 searches a month for "best treadmills for sale" but 1000 for simply treadmills, even though your ROI may be better on the first, doesn't mean it can't be reasonable on the second. Are you going to ignore having potentially 100 times the traffic and 100 times the sales? Making $100 in revenues instead of $10k?
    Signature
    Profitable PPC Campaigns Don't Happen By Accident
    {{ DiscussionBoard.errors[10526769].message }}
    • Profile picture of the author dburk
      Hi Erik,

      Maximizing ROI, is fine for a hobbyist, someone that is not interested in a real business that makes profits, that grows and hires employees. If all you want is an occasional transaction and don't mind going days, weeks, or even months between transactions, then by all means focus on maximizing ROI as your primary objective.

      If however, you are more concerned with total profits earned each month, then maximizing ROI is a recipe for disaster. A real business needs volume, and optimizing profit is finding the balance between ROI, sales volume, and growth that yields the highest total profit.

      Please consider which of the following you would prefer for yourself:

      1000 orders @ 30% ROI with $30,000 total profit

      - Or -

      10 orders @ 120% ROI with $1200 total profit

      I don't know about you, but I would take the lower ROI with higher total profit every time.

      The guy that chooses the $30,000 per month profit will be able to crush the poor guy that chooses to focuses strictly on maximizing ROI, eventually putting him out of business due to lack of sales. That's how it works in the real world of business. You competitors are going to eat you alive if you don't optimize totl profits.
      Signature

      * Get Results - Outsource Your PPC Management |
      *       Don Burk Advertising & Marketing - www.donburk.com

      {{ DiscussionBoard.errors[10526826].message }}
      • Profile picture of the author CenTex Hosting
        Originally Posted by dburk View Post

        Hi Erik,

        Maximizing ROI, is fine for a hobbyist, someone that is not interested in a real business that makes profits, that grows and hires employees. If all you want is an occasional transaction and don't mind going days, weeks, or even months between transactions, then by all means focus on maximizing ROI as your primary objective.

        If however, you are more concerned with total profits earned each month, then maximizing ROI is a recipe for disaster. A real business needs volume, and optimizing profit is finding the balance between ROI, sales volume, and growth that yields the highest total profit.

        Please consider which of the following you would prefer for yourself:

        1000 orders @ 30% ROI with $30,000 total profit

        - Or -

        10 orders @ 120% ROI with $1200 total profit

        I don't know about you, but I would take the lower ROI with higher total profit every time.

        The guy that chooses the $30,000 per month profit will be able to crush the poor guy that chooses to focuses strictly on maximizing ROI, eventually putting him out of business due to lack of sales. That's how it works in the real world of business. You competitors are going to eat you alive if you don't optimize totl profits.


        I agree with this. really the whole point of PPC is to get customers to the site. You will always have a lower ROI with PPC. Key is get them to your site and keep them. One you have them as a customer you can always upgrade them later to other services.
        {{ DiscussionBoard.errors[10526915].message }}
  • Profile picture of the author erikme
    Thanks for your answers! I'm new to PPC and you made the point clear. ThanX
    {{ DiscussionBoard.errors[10527038].message }}

Trending Topics