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Using PPC To Maximize Your Search Engine Positioning ROI

 by: Dave Davies

The quest for higher search engine positioning on the natural search engines is generally the quest to increase revenue from a product or service. It is not the rankings themselves that hold any special value; it is the visitors that they bring and the resulting increase in business. It is for this reason that the PPC engines and namely the secondary ones are a great tool in developing a campaign strategy for the natural engines that will produce the highest return on investment.

While tools such as the Overture Search Term Suggestion Tool and WordTracker are great tools for helping to determine which phrases are most searched, they cannot provide you with which phrases will produce the highest return on investment and let’s be honest, search engine positioning is not about traffic it’s about money. While traffic can often mean money, knowing which search phrases are going to lead to the highest conversion rates will give you a great advantage going into your SEO campaign.

While testing phrases on the PPC engines will result in an increased timeframe for your search engine positioning campaign, this step can result in much higher conversions from the traffic you are going to get. For example, if you were a business owner who was promoting a brand new acne treatment and you were to simply look for the phrases with the highest numbers of searches to target in the promotions for your site, you would undoubtedly settle on the single keyword “acne” as your primary targeted phrase. Will this produce the highest ROI? Unlikely and lets take a look at why:

Keyword phrase: acne

Searches: 2,470/day estimated on WordTracker

Inbound links of #1 site: 2,642 on MSN

Number of pages of #1 site: 34,100

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Approximate cost to optimize site assuming it is new with 50+ pages: $7,000 - $10,000 with guarantee.

Now, let’s a take a look at a less competitive phrase such as “acne treatment”:

Keyword phrase: acne treatment

Searches: 516/day estimated on WordTracker

Inbound links of #1 site: 216 on MSN

Number of pages of #1 site: 153

Approximate cost to optimize site assuming it is new with 20+ pages: $3,000 - $5,000 with guarantee.

Armed with this information you would then want to test these two phrases on the PPC engines. Engines such as Google and Overture provide great reporting tools that will enable a website owner to actually track which phrases are converting for them, however at $8.85/click on Overture to be #1 for “acne” or $2.90 to be #1 for “acne treatment”, that option may be just a bit out of your price range. And so we have the secondary engines.

Pay-per-click engines such as Enhance Interactive (formerly Ah-ha) make a great testing ground for those choosing their keyword phrases. Ranking #1 for “acne” on Enhance can be had for $0.15/click and “acne treatment” is only $0.23 to be #1. Setting aside the money that could potentially be made from the PPC engines themselves, with bids this low this engine and others like it make great testing grounds for keyword selection.

To test your keyword phrases simply bid to be #1 or at least in the top three for a potential primary target phrase. Keep the site ranking for a couple weeks monitoring your traffic and the sales of your product/service. After a couple weeks remove the phrase from your list and switch it to an alternative phrase. Again, monitor this success of this phrase for a couple weeks. After you have tested all of your potential primary phrases you will be in a position to assess which one will produce the highest return on investment.

Selecting which phrase will produce the highest ROI based on these numbers can be a bit more involved, weighing a number of factors such as the cost in either time or money (or both) to optimize for the various phrases, the sales-per-click ratio, etc. Basically what you want to do is consider your budget vs. how much can you make per click and thus, how many sales you can expect per day based on the keyword phrase you have chosen to target. If a promotion can pay for itself over a 3 to 6 month period of time, thus producing a surplus after it is paid off, it can be considered a successful promotion.

It should be noted that this step is not an exact science. The number of sales you will get per day will be dependant on exactly what position you attain on the natural engines (your content is also important obviously, however you will have used your existing content on the PPC engines so for the most part you will be comparing apples-to-apples). There will be some guestimation but you will get a good idea of how many sales you would make if you ranked in the same position for all of the possible phrases.

While I have not tested the above noted phrases on the PPC engines and applied them to the natural engines I would feel confident in predicting the ROI would be higher for “acne treatment” based on two factors:

The competition is lower and thus the number of sales required to produce a return on investment is about half that of the phrase “acne”.

The phrase is far more targeted. People searching for “acne” may be writing papers on the subject or just looking for information whereas people searching for “acne treatment” are far more likely to be looking for a solution to an acne problem.

While I have my instinct on the subject, were I to advise a client on the best possible strategy I would have to recommend testing these phrase on the PPC engines. It may extend the promotion for a bit but in the end the decision on which keyword phrase makes the best target will be based far more on statistics and facts than a simple guestimate.

Additional Considerations:

While this article’s purpose is to explain how PPC engines can be used to help increase the ROI of a search engine positioning campaign, your use of the PPC engines should not stop there. While you are testing out phrases you should be making sales as well. If the revenue generated from the PPC promotion is higher that it’s cost then stick with it. PPC engines are a great testing ground however they’re also a great source of leads and revenue if used correctly.

There are many PPC engines out there. We’ve researched a number of them and posted the ones that have produced the highest ROI for our clients on our PPC Engines page. These are the engines that we have found are worth sticking with once any testing phase is complete. In the case of the primary engines (Google and Overture) you will have to use your discretion based on the cost-per-click to determine whether they are worth testing or advertising on.

By Dave Davies, Beanstalk Search Engine Positioning, Inc.

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Dave Davies is the CEO of Beanstalk Search Engine Positioning, Inc. He has been optimizing and ranking websites for over three years and has a solid history of success. Dave is available to answer any questions that you may have about your website and how to get it into the top positions on the major search engines.

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You are only as good as your PR!!

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Imagine a situation where you have started a great site with exceptional design and high quality content. Your pagerank of course is zero and you alexa traffic rank is somewhere in the 18th lack or perhaps more. You want to bring visitors to your site and hence want it included in the search results but the search bots are taking their own time caching your site. Finally the googlebot caches your site and you say, what the heck, I am through. But to your dismay you find your site way deep down even for a non competitive keyword.

You feel a bit down but have the belief that getting some quality inbound links will solve the issue. You start reaching sites with your link request but alas no one seems to be answering. Of course they want a link from a site having a good PR and not with a site having a PR of zero irrespective of the quality. In fact quality just doesn’t seem to matter in today’s internet which is all but pagerank. If your site has a good page rank you are the king or else no one is ever going to bother about you.

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So the only option left before you now is to get links from directories, blogs, forums etc. and hope for the best. You do your best and wait for a PR update. After months of waiting the PR updates do happen but your pages get no more than PR3. You feel great about it though thinking ’something is better than nothing’. Now again you approach sites for a link exchange but to your sheer disappointment find that good sites never respond to you. All you seem to be getting are links from relatively unknown and low quality sites. You develop hundreds of low quality links and wait for the next PR update which seems an eternity to arrive. You have strong faith that for all those links you established your site will surely get a higer PR, but nothing of that sort happens. Your PR increases but not more than PR4. Then you realize that PR is exponential in nature. God forbid, you feel like cursing the PR system but you are left with no choice but to continue racing against the odds to get links. You become a link maniacgetting links from all corners of the internet; after some time you realize that you are spending considerable amount of time getting inbound links and almost negligible amount of time on your website. You have not updated content for months now and your visitors are starting to turn away from your site.

One fine day you read an article that google has started penalzing sites that resort to getting unnatural links with an objective to cheat its ranking system. A few sweat drops escape from your face as you realize you have been spamming guestbooks and giving links to link farms. You also find you have cross linked with many sites actively taking part in link farms. You also find that you have got links from free for all sites. All these can lead you into trouble so in a frenzy you start removing links to those sites after mailing them and explaining them the reason. Finally the PR update happens and you get a PR of 5. You have entered the land of the lords now and you escaped getting penalized. You think, ‘what a heap load of hardwork getting a quality site to rank, I wonder how these junk sites make it to the top?’. And ask yourself a question, ‘Is a site only as good as its PR??’ or ‘Is the internet only meant for big shots who can invest considerable amount of time and money on optimization?’. The answer to this is probably yes which you gulp down with a pinch of salt.

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