How Much Does Your Competition Pay-Per-Click?

by: Ed Zivkovic

Effective Pay-Per-Click Management

Update: This article was originally written to introduce the Free Overture Max Bid Tool. The bad news is that the tool is no longer available.

Apologies for the inconvenience.

Apparently, Yahoo! has purchased Overture and access will be restricted to account holders only.

Free Keyword Tools

I now use these other Free keyword tools which are much better.

What is my Limit?

If you search the term online casino, you will notice that the top bid (at time of writing) is $20.01. This means that the advertiser is willing to pay that much for just one visitor to click on their ad. If you search the term web hosting, you'll see that to get to the top of these results, you'll need to bid $7.26. If you search the term resale rights, at time of writing it costs $.071 per click.

So how do I figure out if my campaign will make money? Simple. I just use this Free Pay Per Click Calculator. The calculator shows what my maximum bid should be in relation to my profit margin and the amount I am willing to spend from that profit margin.