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What Should You Know About Search Engines and Pay-Per-Click?
by: Chet Childers
Here’s a fact for you, 85 to 95% of websites are found through a search engine.  You may have the most incredible website on the Internet, but it will receive little or no traffic without search engine visibility and ranking.  Can you imagine a billboard in the Sahara desert?  Who sees it?  

So, how will searchers find your website? What types of search engines could they use?

Search engines fall into two categories.  The first is referred to as natural, organic or standard.  The second is called pay-per-click, paid inclusion or paid placement.
 
Natural, organic and standard are interchangeable terms describing a search engine that bases its search rankings on a ranking algorithm.  The algorithms involve a number of criteria and parameters, all relating to the content of the website, the website’s size, the number of incoming links to the website, and the content’s relevancy.  You will hear terms such as keyword relevancy and keyword density to describe various components of the algorithms. 
 
For the standard search engines, you, your webmaster or hired search engine optimization specialist could spend considerable time optimizing your website to achieve top rankings. The goal is for your website to appear on the first or second page of the search engines’ results when your target user searches keywords or keyword phrases.

The good news is rankings on standard search engines are free.  The downside is the tremendous amount of time and effort required to achieve exceptional search engine rankings.   Let’s confess to each other that top rankings on standard search engines can be tough and timely to achieve!
 
The interchangeable terms pay-per-click, paid inclusion or paid placement describe a search engine that bases its search rankings on a "bid for position" basis.  Simply stated, you "bid" a price to be in a specific position of the search rankings for a particular search keyword or keyword phrase.  For example, the #1 position on the search phrase "pay per click" recently required a bid of $3.55 per click, whereas the 15th position required only a bid of 55 cents.  As a result, your differential website advertising costs between position #1 and #15 can be considerable.
 
With pay-per-click search engines, your ability to bid high can dramatically impact your website's search engine ranking when the search results display website domain names or URL's for the search keyword or keyword phrase.  The benefit is your website gains visibility with the searcher, but you are not charged the pay-per-click "bid" until a searcher actually clicks on your website domain name or URL displayed in the search engine results. The selection of your website in the search engine results is called a click-through.
 
In general, click-through rates range from 1% to 5% of the number of impressions.  What is all of this?  A click is when a searcher selects or "clicks" your pay-per-click ad.  An impression is one display of your pay-per-click ad on the search engine results.  So, the click-through rate is a measure of the total number of ad clicks versus the total number of impressions in a period of time:
 
    Click-Through Rate % = Total Number of Ad Clicks / Total Number of Ad Impressions * 100
 
Let's do the math for our #1 position bid of $3.55 per click.  In September, 2004 there were 21,535 searches for "pay per click."  First, let’s assume a 1% click-through rate. The top bidder spent $764.49 (21,535 * 1% * $3.55).  Now, at a 5% click-through rate the top bidder spent $3,822.45 (21,535 * 5% * $3.55).  Budgeting and controlling marketing expenses with such a broad range of potential costs could be tough.  Plus, such costs could be the tip of the iceberg. We still must consider derivatives of the keyword or keyword phrase. So, was being #1 worthwhile?  That depends on your website’s cost per visitor, conversion rate and profit margin of your product or service.
 
From what we’ve covered so far, you should realize you can achieve a top or high ranking through the pay-per-click search engine. But, a high ranking will cost money and these costs can be volatile. Meanwhile, the standard search engine remains free. 

However, pay-per-click offers one significant advantage.  It enables you to achieve website visibility with a high ranking instantaneously or overnight.  If you want to draw traffic to your website fast for any reason, pay-per-click can make that happen. Remember, maximizing the standard search engine process takes time! 
 
Let’s summarize the pros and cons of pay-per-click marketing: 

Pros

* Improves your website’s ranking and traffic quickly.
* Tests the marketability of your product or service swiftly.
* Determines the ability of your web site to convert visitors to a call to action or make a purchase promptly.
* Identifies which keyword phrases will provide the best conversion rate rapidly.
* Provides complete control of the search engine campaign, both position and cost.

Cons

* Cost

Many individuals criticize pay-per-click because of the costs involved. But, have you really thought about the cost issue?  Unless you or someone in your organization has expertise in search engine optimization, you’ll probably pay several thousand dollars in fees to a search engine optimization specialist to improve and optimize your website to achieve higher rankings in the standard search engines.  So, my question to you is.  Are the standard search engine rankings really free?

At the end of the standard versus pay-per-click search engine debate, it’s like the old saying, "There is no such thing as a free lunch." Or, it’s like the old commercial, "You can pay me now or you can pay me later." The reality of the debate is you must evaluate your specific website situation and utilize the search engine approach that maximizes your website promotion goals and investment.



About the author:
Chet Childers is a successful Internet marketer utilizing both pay-per-click marketing and search engine optimization to increase website traffic. His clients’ websites promote products such as window treatments, furniture, medical uniforms, swimming pool tiles, capital equipment, computer software and much more. To learn more, visit http://www.ThePayPerClickMarketer.comand enroll in our free e-course.


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 Traffic Exchange Sites
 by: Bryan Quinn

Traffic Exchange Sites are websites where you get page views of your own site in exchange for visiting others. Many such sites are available. However, choosing the right one or a combination of them can be a very time consuming process.

Basically there are two types. Manual surfing and Auto surfing. Some Traffic exchanges cater for Manual surfing only, some cater for Auto surfing only and some cater for both.

Manual surfing - This requires your input by clicking a button after a specified time period, generally 15, 20 or 30 seconds, although there are a few other variations. With manual surfing, the surfer is expected to view each site. However, with most exchange sites, it is possible to minimize or resize the windows. This defeats the purpose because it allows multiple sessions to be run simultaneously. On the better exchange sites, security measures are often used to deter this. These are normally random prompts that require user input. For example, after x number of page views, you may be required to enter a code, select a color or image or perform some other variation of this.

Auto surfing - This requires no input. However in reality, your input may be required because of popup or frame breakers. Some traffic exchange sites require that the pages run are maximized and although you can minimize the page yourself, it will automatically maximize at the next refresh. You will also find that with some exchange sites, pages will run on top whereas with others, pages will run quite happily underneath, allowing you to do what ever you like without ever viewing the page content.

Both manual and auto surfing will bring traffic to your website, but there is a much greater likelihood of your web pages being actually seen with manual surfing.

Credits - As well as surfing, credits are usually acquired for subscribing, for referrals and for any winnings associated with exchange site lotteries, games or competitions. These credits can then be used to increase the traffic to your site. Some exchange sites will also allow you to sell your credits to other members.

Free or Paid - The majority of Traffic Exchanges offer a paid option. This option may give you a better surf ratio, bonus credits, money for referrals or other benefits. Before paying however, it is important that you test how targeted the traffic is that you receive. There's no point in paying for extra traffic if it doesn't generate any more income for you.

Click for Credits or Buy Credits - Is it worth buying credits?

This can depend on a number of reasons. The two main ones are time and money.

Let’s take an example

At the time of writing the cost of 2000 credits for free members of a well known Traffic Exchange Site was $40. This works out at $0.02 a click. For pro members the same $40 bought 2200 credits.

With the number of clicks limited to 250 per day and page views of 20 seconds this means that in theory it will take you 250 X 20 = 5000 sec or 83 minutes 20 seconds to view the 250 pages. However in practice you must allow extra time for clicking the next button, clicking the title of the page you will be viewing and any sites worth looking at.

Since I am a firm believer in practical results, I viewed the 250 pages. It took me 2 hours and 12 minutes to accomplish this. During that time, I accumulated 854 credits. To buy these credits would have cost $17.08 as a free member and approximately $15.53 as a pro member. Allowing for rounding up, this equates to almost 390 credits per hour or $7.80 per hour cash value.

Now ask yourself this. Would you work for $7.80 per hour?

I must emphasize that this is only one example and that other results will differ because of the random allocation of credits. It is shown here only as an example and to give you an idea of the cost implications for one particular traffic exchange site. The cost of credits may differ dramatically for different exchange sites. If you buy or intend to buy credits from a traffic exchange site, you can apply what is shown in the example. There's no need to click on a large number of websites to find out if your exchange site is giving you enough credits for your money. A sample of around 20 sites should give you enough information to produce a rough value-for-money guide.

If you enjoy this sort of thing or want a break from train spotting, you could expand on this. Increase your sample size, increase the number of samples, select a good representation of traffic exchanges and tabulate your results. Choose enough sites and you will be able to create your own league table. There’s a market for everything.

Whether you use traffic exchange sites or not in the quest for more visitors to your site, you should at the very least know what they are and what they do. But don't totally dismiss them. They are part of an expanding market. I recommend that you try at least one traffic exchange site. You could read every book on the subject, but without active participation, you will not be qualified to comment on their worth or suitability. The time taken for a few mouse clicks is a small price to pay. If it works for you, you have learned. If it doesn't work for you, you have learned.

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