Pay Per Click Advertising Costs
Depending on the search engine, minimum prices per click range from $0.01 to $0.50, these prices are often referred to as Costs Per Click (CPC). Popular search terms can cost much more and prices will vary drastically from one market to the next. With PPC marketing you decide how much you are willing to spend. Ad placement in search results is determined by bid amounts. Target ad placement depends upon the competition and your advertising budget. To minimize CPC it is usually best not to target the top ad positions but to select placement lower in the search results.
PPC marketing companies such as Google and Yahoo charge less per click for ads they deem relevant to the search terms being used and whose Click Through Rate (CTR) is high. For this reason, marketers should continually strive to improve the CTR of their ads.
Marketing Budget
Advertisers should determine a monthly PPC budget. Yahoo and Google suggest a minimum of $50. The actual amount spent is dependent upon bid amounts and popularity of search terms. Finding the right balance between cost and sales normally takes time, therefore a monthly budget is suggested for maintenance of your PPC account.
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