How To Reduce Your Advertising Cost By Anthony Morrison

First and foremost I want to thank everyone for getting on our teleconference calls and really staying engaged. Obviously those calls are completely free to those of you who have joined one of my programs and I do them simply to help you in every way possible. As you probably know we discussed how to reduce your PPC cost (pay per click marketing cost) so you can get more bang for your buck, which basically just means a better ROI.

Here is a breakdown of exactly what I suggest you do in order to make this happen. Start off on AdBrite or even on Google and create a PPC ad for whatever you are marketing. You can create a written text ad or even a creative (image) ad to get started. I suggest running that ad for a minimum of one week so you can get stats on it for every day of the week including weekends. Once you have accomplished this here are the things you want to look at:

1. What is your CPC (cost per click)
2. What is your CTR (click through ratio) meaning how many people click on your ad vs how many people the ad is shown to during this time.

Here is why this is important right now you are “paying per click” but most networks offer another way to pay for your advertising which is called CPM. CPM (cost per thousand views) means you pay simply to be seen and you select how much you are willing to pay per thousand times your ad is shown. Obviously they have minimum bid amounts etc depending on the network/platform you are using to advertise. This method is great ONLY if you have a high CTR because remember you are paying to be seen so even if your ad gets no clicks you still pay.

The reason you start off with a PPC campaign is it’s like having a safety net below you. If the ad doesn’t generate clicks guess what, you don’t pay. However, once we have some data let’s assume we see the following after our first week running the ad:

1. CPC is averaging .50 (50 cents)
2. CTR is averaging 1%

If the same network says you can switch your ad over to a CPM model let’s do some math.

Assuming you pay a $2.00 CPM that would be $2.00 per 1000 times your ad is shown.

1000 impressions X 1% CTR = 10 clicks for $2.00 (since you are paying $2.00 per thousand views)

Now if the same ad is costing you .50 per click on the PPC campaign you would pay $5.00 for those same 10 clicks on the PPC model.

As you can see it’s all about testing. Write an ad utilize the safety that PPC offers you and then switch to CPM model if it makes sense. It’s pretty easy and once you get going it will get even easier to determine how it is done properly. This allows you to scale just about anything and everything you are doing!