How Well Do You Know Your Niche’s Demographic?

John — Fri, 13 Feb 2009 11:00:40 +0000

Sometimes the cost of PPC traffic is just far too expensive to make it worthwhile entering a specific niche market. When I do my niche research analysis, and see inflated PPC costs, I occasionally wonder just how my competitors can afford to buy traffic a such a high price. Either they are taking a long term view on the lifetime value of the customer, they know something I don't, or they've miscalculated the break even point!

Let me take a moment to explain how I calculate my break even point; and then we can move on to why understanding your niche's demographic can save you a lot of money and tap into targeted traffic at a much lower cost..

For example, let's say that we're promoting a £279 product with a 10% affiliate commision. That means each sale will generate £27.90 and, if the sales letter is converting at the typical 2%, our income per visitor will be: (£27.90 x 2)/100 = £0.558. So our PPC breakeven point is 56 pence and anything less than that will earn us a profit.

Now, when I see my competitors paying 56 pence per click and above, my decision is easy. I'm going to leave them to it and move on to my "Plan B" where I'll target the same audience but I'll attack the market from a completely different direction based on my in-depth knowledge of the demographics.

Plan B requires a little "out of the box" thinking. Let me explain.. ...{+}

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Optimising Your Adwords Click Through Rate

John — Sat, 17 Jan 2009 15:56:54 +0000

With the steady increase in Pay Per Click advertising costs and the rise in the number of competing adverts it's important that you get the best possible bang for your advertising buck.

If you've read the more recent guides, ebooks and video tutorials on using Adwords, you're probably already aware of the various tactics..

One of the most common is to analyse your competitors PPC ads to see which are getting the best rank and simply create your own ad based on their successful content. The problem with this tactic is that you'll see more and more of the same type of Adwords ad and it'll become really difficult for the consumer to choose which one to click!

Another tactic that's becoming increasingly popular is to create an advert that is controvertial or contrary in nature. These are the ones that shout out "Don't Buy Product Name", "Is Product Name A Scam" and similar wording. While this approach can help to get your ad noticed, it also need to be handled carefully. Especially when the prospects arrives on your landing page. It's critically important that you dispel any potential negativity associated with the product that you're promoting. The biggest weakness with this approach is that people feel that your advert is misleading when they discover that it was just a ploy to get the click.

A more honest approach is to use "Product Name Review" in your advert. This works quite successfully because more and more people are looking for peer based reviews before they make their buying decisions.

If you are willing to put in a little bit of extra effort, there is a tactic that I've been using with great success that will drastically increase your Click Though Rate...{+}

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Marketing Confidential » advertising costs

How Well Do You Know Your Niche’s Demographic?

Optimising Your Adwords Click Through Rate