Pay-per-Click Book Promotion: Seven Tips for Success

August 2005
by Brent Sampson

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Pay-for-performance or
pay-per-click Internet advertising is making big waves lately, and the two
biggest players are Google and Yahoo (which recently acquired Overture to
become a major player in the search arena once again). Microsoft recently
jumped in with MSN Search, while numerous other fish (albeit tadpoles) are
active in the pond.

With pay-per-click advertising via
Google and Overture, the cost of an ad is based on performance. In other words,
you pay for an ad only when someone reacts to it, by clicking on it. However,
the effectiveness of the ad is gauged by its conversion ratio. For example, if
one out of every 100 people who click buys your service or product for $100 and
your ad costs $1 every time someone clicks on the ad, then your conversion-to-cost
ratio is 1:1—you’re breaking even. If the conversion ratio goes up,
you’re making money. If it goes down, you’re losing money.

Thanks to tools provided by both
Google and Overture, these conversion ratios can be calculated automatically if
you add a little Javascript code to your Web site.

The cost of an ad in traditional
print media, on the other hand, is based on circulation and “readership.”
Although rates are expressed in terms of CPM (cost per thousand), you have no
way of knowing how many readers actually see an ad you place. And even if they
see it, how

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