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atom thought

Five similarities between PPC and the stock market

26 Sep 2011
By Ankur

It’s no secret that a well managed stock portfolio and a good pay per click (PPC) account can both yield a high return on investment. And in each case, while it’s easy to set up an account and get started, managing one can be quite complex.

But the similarities don’t end there. This post highlights five characteristics that PPC marketing and the stock market share.


1. You must research before you invest

Stock market: With a wide variety of options available, it can be overwhelming to decide which stock to invest in. Generally, past performance influences your decision of whether or not to invest.

Pay per click: In PPC you rely on keyword suggestion & traffic estimation tools to decide which keywords to bid upon. Traffic volumes, average costs and search trends can help you to make an informed decision.


2. Performance determines price

Stock market: The current price of the stock is based on the company’s current performance. We’ve witnessed instances such as “Lehman Brothers” where the stock price went right down when the company was in the doldrums.

Pay per click: A keyword’s potential contribution to the company’s PPC return on investment, or its current performance, correspondingly determines the maximum amount you are willing to pay for that keyword.


3. Good performance doesn’t go unnoticed

Stock market: If a stock you invested in results in the company making a healthy profit, you receive dividends, thereby increasing your return on investment.

Pay per click: If you have keywords that perform well, then you are rewarded with a lower cost per click and a higher ad position. Generally, click through rate is a good metric to assess the performance of that keyword.


4. You can build on your success

Stock market: If stock you invested in generated higher returns, you can try to replicate your success by investing in similar companies within that industry.

Pay per click: If you detect highly performing keywords, you can look to expand & invest in similar keywords, plurals, synonyms etc.  Occasionally you can benefit from the odd misspelling, too.


5. You can become a certified partner

Stock market: If you wish to trade on behalf of other customers, a stock exchange membership can go a long way.

Pay per click: The majority of the advertising networks, like Google, Yahoo & MSN, offer certification programmes. Customers looking for an agency or individual to help with their PPC activity may consider using certified professionals.

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