To Pay Per Click or Not to PayPer Click PT VI

Writing by Brick Marketing on Wednesday, August 20, 2008

Lights…Camera…ACTION! Or, in this case, Pay Per Action. In this last of our series on Pay per Click Local Advertising and variations thereof, I would like to discuss what is termed in the ‘biz as Pay per Action. Like other Pay per Click advertising, Pay per Action offers businesses a service that is paid for when a certain action is performed or obtained by a client or potential client. Pay per Action is used by many search engines. You, the advertiser, pays a specified amount upon completion of a particular action. Here are a few examples of some “actions”:Conversion or Conversion Rate. Conversion in marketing is when the perspective client takes the marketer’s intended action. Conversion rate is the amount or percentage of unique visitors who take a desired action on the business’ web site. For instance, Customer X visits your web site through an advertisement they saw on another site (an advertisement or referral to your site). You, as the business, pay a set fee for the Customer X clicking through (click-through rate) to your site. Customer X makes a purchase and tells Customer Y all about your site (word of mouth, another fantastic selling medium, though hardly predictable). Customer Y goes to your site, which costs you nothing, yet you perhaps make a sale. Pay per Action is the “meat and potatoes” of this whole process.Sales Lead. This is the “Customer X” of the sales world. The person who goes to your site intending to buy.

Sales. The ultimate goal in any business is to make a sale, whether retail or service, local or worldwide. The bottom line is sales. This is your final “action” as a marketing strategy. Pay per Action can generate these sales, but it is up to the business whether the conversion VS. the cost of each Action will end in profits. Look for ways to generate leads through referrals that can lead to word of mouth, and your Pay per Action will be well worth it in the long haul.


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                      Category: Local Pay Per Click                      

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