In the course of working on our latest book, I have put a lot of thought into the concept of a trading-style system for managing a paid search campaign. There is definitely a correlation between investing in securities and investing in paid search. Every keyword you bid on is sort-of like a stock: you are bidding a certain amount in anticipation of turning a profit on it.

Possibly the investing concept (also a gambling concept) that is the most relevant to pay per click is money management. You want to allocate your budget to the keywords that will maximize your profit and minimize losses. Unfortunately, unlike with securities, you have no historical data to use to test your beliefs except your own. And it costs money to generate your own data.

There’s no way around it. If you want to successful in paid search, you have to be willing to pay the price to generate enough data to know what changes you need to make to your account.

Another big difference between trading securities and managing a paid search account is that there are other variables other than just the keyword (the “security”) and the price paid for it. With paid search, you have more “touchy feely” things to deal with – namely, your ad copy and landing page copy/design. You can have your account set up just right and your bids set perfectly, yet still not be successful because of your ads and landing pages. There is a complex relationship between the keyword, bid, ad, and landing page. A weakness in any of the elements can greatly diminish the effectiveness of a pay per click campaign.

But again, it all just comes down to generating data, and the way to do that is to test, test, test. With our new book, we hope to give readers a reasonably simple system to use to properly allocate their budget. The rest is just good ol’ split-testing and constant revision.

If you need help with PPC management NOW and can’t wait for our book to come out. feel free to call us at 888-299-4837 or email Info@WorkMedia.net.