Reducing Your PPC Ad Budget While Increasing Your Pay Per Click ROI.

by GMedia on August 5, 2011

A new study reveals that as a whole, the US economy is still trending down, but one area of business is showing signs of growth over these trouble times. Surprisingly the billion dollar Pay Per Click industry continues to increase at a rate of 23% per year. Budgets from new advertisers continue to come in to Google, Bing, smaller ppc ad providers as well as PPC management firms daily. Along with the increase in PPC budgets, we have also seen a rise in the overall number of click frauds.

According to Wikipedia “Click fraud is a type of Internet crime that occurs in pay per click online advertising when a person, automated script or computer program imitates a legitimate user of a web browser clicking on an ad, for the purpose of generating a charge per click without having actual interest in the target of the ad’s link. Click fraud is the subject of some controversy and increasing litigation due to the advertising networks being a key beneficiary of the fraud.”

Studies have show that the overall industry average click fraud rate is about 16%.

Here are some tips that will help limit click fraud in your Pay Per Click campaign while increasing your PPC ROI results.

1. Analytics use a reliable web stats tracking program and study trends of your click throughs.

2. Use GEO Targeting, if your a regional or local business, only display ads in those areas. A large amount of click fraud comes from countries that you probably do not do business with anyways so targeting locations is optimal.

3. Use only top tier systems to run your ad campaigns on, 2nd tier PPC ad providers offer click throughs at a far lower rate then Google, Yahoo and Bing but the quality is much lower and the click fraud is guaranteed to be higher.

4. Limit the times of day that your ads display. Running your ads during business hours seem to provide a higher rate of return. Also there are many bots that run at night and studies have shown that click fraud rates are higher between 9pm – 6am.

5. Bid on lower cost terms, click fraud tends to happen on high dollar terms. Use long tail keyword terms to lower your click fraud risk and increase your PPC campaigns ROI.

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