Does online advertising work, or do most people fail to make a return on investment? What does it take to make money from online advertising?
Does online advertising work? That's a silly question, of course it works, or Google and Facebook wouldn't be billion dollar companies, but the real question is does online advertising work for everyone?
In order to get a cheap cost per click on Google Adwords, you have to pick a keyword, or many different keyword phrases to target with low competition.
Then, you have to get a good click-through rate in order to lower the cost per click even further. Google Adwords has it's own training program to teach you how to optimize your campaign, so I won't go into that too much, but I will give you a couple of tips that I think might help.
First, you have to have a product that will generate at least thirty dollars in profit when you make a sale. Then, you have to have a landing page for your ad that has a strong call to action, and is likely to turn visitors into customers, (or perhaps opt-ins on an email list).
The page itself has to have a high page rank, and be of high quality, in the same way that Google would rank a page for a search. Squeeze pages are of low quality, and will give you a low quality score.
One tip I got is to make a text ad with only one keyword that it's targeting in that campaign, with the same title as the ad. You only allow the ad to appear at the top of the search results, not in the display network.
This means that when somebody does a Google search, your ad is the first thing they see, at the top of the results, and it answers their question exactly, as it's the same thing they were searching for.
This will give you a high click-through rate, and with a good quality score for your site, and low competition for that keyword, you may be able to get clicks on your ad for as low as ten cents.
It used to be as low as one cent a click, and it still is in some countries, and for some really low competition keywords, but it's hard to find clicks that cheap for any profitable keyword.
Does Online Advertising Work On Alternative Advertising Companies?
There are many other online advertising companies you can use, like Facebook Ads, Stumble Upon Ads, Digg Ads, Plenty Of Fish Ads, Chitika, Kontera, etc.
Some of these would work better, and some would work worse. I don't know which ones work better, but I can tell you the benefit of using some of these alternative online advertising companies.
Facebook Ads is a good example. The cost per click is high to start with, and improves with the click-through rate, just like Google Adwords, but the difference is, you don't have to target any keywords.
Some keywords related to home loans, personal injury lawyers, cruises, and cars have a cost per click of almost a hundred dollars. If your site is related to one of these high competition keywords, then you are better off advertising on Facebook, but only if you can target the right sort of people.
Facebook Ads lets you target people based on age, country, city, and interests, but it is not quite so good at targeting those people who are looking to buy something.
That means you may get more people clicking out of interest, but not actually buying your product. It's a matter of trial and error, and realistically, you can probably expect to lose money before you make any, no matter which type of advertising you decide to use.
Plenty Of Fish ads are good, particularly for weight loss products, and things like that, because you can actually target people based on whether they are overweight, how much money they make, and even whether they smoke cigarettes or take drugs.
I haven't spent a lot of time personally trying to make a profit from pay per click advertising, because even if you get a good click-through rate, you need a good conversion rate, and a large profit in order to make a return on investment.
I have only just begun making my own products, they don't have a large profit, and don't have a great conversion rate, so I would probably end up being one of many people who try online advertising and fail to make money.
Does online advertising work? To tell you the truth, I don't really know, I guess it works for some people. If I could figure out how to make good money at that, I probably wouldn't be writing this article. I have learned a bit about it though, and I can offer you some help setting up an advertising campaign if you want.