Internext Report: Cost Per Click Campaigns

LAS VEGAS — "Cost Per Click SE Campaigns: Day Trading for Online Adult Professionals," was a well-attended seminar at the January, 2005 Internext Expo in Las Vegas. One of the more eagerly anticipated presentations, traffic-hungry attendees listened to words of wisdom from some of the biggest players in the targeted traffic market.

"Search engine traffic is key for both new site adult operators and veterans," read the seminar description. "The cleanest traffic you'll find, which could mean better converting traffic, is when a surfer finds your site directly from a search engine listing."

Panel members included Gary Kreman of Sex.com and Pete Newmann of findwhat.com, Michael from searchboxxx.com and Daniel from ABC Search, with Wasteland President Colin Rowntree moderating.

"Historically, you've been buying per-impression media," said Newmann, alluding to print and broadcast media that sells advertising based on market size, location and share - and that offers few options for measuring tangible results. According to Newmann, the Internet allows for realtime transaction chain analysis, where an investment in advertising can have a direct and measurable result, and cost per click campaigns are the vehicle by which this process occurs.

"Look at the revenue you generate, minus the costs," Kreman said, steering the seminar toward the topic of return on investment (ROI) and the various tools that webmasters can use to monitor and maximize it.

"Tracking ROI is vital," said David, including determining your cost per impression, cost per click, and cost per acquisition - three of the basic measurements by which traffic is bought and sold.

"For those who need the phone to ring, 'pay per call' is a great option," added Newmann.

Rowntree asked the panel for their thoughts for maximizing success with traffic buys.

Kreman responded that, "The first thing you need to do is to get your own house in order or you won't be successful." He was referring to the fact that no matter how much is spent on purchasing traffic, sending it to a site that won't convert will simply waste money.

"Don't put the word 'free' in your listings - but put the price of your site instead, if the search engine allows it," said Michael, advising attendees on how to minimize paying for clicks from free-loading surfers.

"Be as specific as possible with the terms you bid on," said Newmann, adding that, "it will lower bid costs and improve ROI. Even five word strings will work great. As long as you're making more than you're spending, you're in great shape!"

According to Michael, "Each engine is different and a requires a unique approach - you've got to learn the tricks of the trade."

"Start off slow, learn the metrics, and grow from there," said Michael.

Kreman quickly pointed out that large sums of money were not required to get started in the market.

"You can start out with a $500 budget and figure this all out," Kreman said.

Michael agreed, "You don't need to be number one in the listings to profit from this traffic."

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