Setting up and launching a paper click search engine campaign is an effective method for bringing targeted traffic to your website. It provides instant results as well as ensures that the visitors will have some interest in the topic of your site.

But the key to ensure that a pay per click campaign is profitable, is to closely monitor it.

Monitoring is important because it help you see what the best ways of spending your PPC ad dollars are. By monitoring your Google Ad Words and Overture campaigns you will notice trends that would have otherwise eluded you.

For instance, by closely seeing the click through rate of your key words you will know which key words you should be spending more money advertising on.

Let’s assume that a well put together site can experience a 1% sales conversion ratio. Meaning that for every 100 visitors to a site there will be one sale. The owner of that site can determine that he or she must bring 100 visitors to the site to make a sale.

If the site owner is bidding .10 a click for the term wholesale on Google Ad Words, then the actual cost of making one sale is $10.

As long as the average profit per sale is over $10, this campaign is profitable.

Now comes the monitoring facet. If the site owner is receiving a 2% click through ratio on his Google Ad Words campaign, it means that for every 100 times the ad is shown on Google two people click on it, and are taken to the site.

The site owner can now start more campaigns for wholesale related terms because he knows that the Google Ad Words campaign is profitable.

Or he can even cut his bid by half, knowing that even if his click through ratio drops by half, he will still receive a 1% click through ratio which is considered to be standard.

By cutting his bid in half, the site owner will be saving $5 for every 100 visitors to come to his site, and by virtue of his savings, earn an extra $5 on every sale.

As you can see, closely monitoring a pay per click campaign can yield an increase in a site’s profitability.

Donny Lowy has set up http://www.billionfreeads.com to provide free online advertising for small businesses.

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