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Advertising on the internet, as with the PPC (Pay per Click), is one of the revolutions that were brought about by the advent of the internet. Many marketers have applauded this innovation due to its speed and efficiency, which has contributed to making consumer's lives and experience on the internet much easier. This is because, all a consumer has to do is type the keyword of the item that they wish to buy on the search engine and is given a list all websites that stock the item and with it they are given a list of relevant advertisements that helps them locate the item easily. Not only is PPC beneficial to the consumers, it is also beneficial to the advertisers in that it gives them more avenues to advertise their wares.

What Is PPC And How Does It Work?

The three top search engines, Google, Yahoo, and MSN, all use the same advertising scheme called pay per click. The two most common types of PPC is Sponsored Search advertising and Content advertising.    Most search engine offer a bidding system for their PPC service. In this kind of system, the advertiser buys some bidding credits using their credit cards which they use to bid for keywords that fall within their product. The higher the bid, the more the advertisement is placed higher on the page. The search engine provider then gets paid for every click that a customer makes on the advertisement. As an advertiser, the main challenge is knowing whether the return on investment is worthwhile because not every click will result to buying. One way to get around this problem is to bid on only those keywords that contain the word "buy" than the generic ones which will attract people to the website but not result to a sell. This guide will help you as  a market to get a positive return on investment for your online advertisement.

Step 1: get an efficient means of tracking your ad spending

The most effective way to track your spending is through Google ad words. Its not always right to assume that all your online sales came from your adverts. Its always a good idea to track where visitors coming from your site came from. This way, you can see the ads that were clicked; keywords searched for and cost to help you make bids in future.

Step 2: Track what happens to your visitors

If the visitors to your site are divided halfway between PPC and organic traffic, it is worthwhile to get to the exact number of purchases that were made by those directed to your website by PPC. Do do this, you need Google analytics integrated with ad words to help track where the visitor came from, the keyword they searched for and what they bought and for how much

Step 3: Calculate total sales from PPC traffic

Get the exact amount of purchases from Google analytics and write it down

Step 4: calculate total PPC expenditure for the period.

Using Google ad words, filter out the results to obtain the total expenditure from the PPC.

Using all the information that you have gathered up there, it's possible to analyze the amount that a PPC customer spends on your website and also on the placements and keywords that are more effective. This will help you in making decisions in future on the right budget and keywords to bid on.