If there is one thing that it pays to do when it comes to planning a pay per click marketing campaign it is paid search research. As the name suggests, this is literally researching your niche within the paid search arena. This involves, but isn’t limited to, identifying your keywords and phrases, identifying the average click prices for the aforementioned keywords, finding out the rough conversion rates and most importantly, finding out what your competition are doing as a whole. If you start your pay per click campaign armed with all of the above data, you’re more than likely going to succeed, well, at least turn some kind of profit.
PPC is 100% about knowing the market, knowing the competition and knowing what to pay for (and what not to). If you can master all of those things, you’ll do well. Keep in mind that it’s better to make $1 a day as you’re learning the game than to spend $10,000 to make $9,999. Start small and then increase your spend daily. A good way to price your keywords is to see what the competition are paying using paid search monitor applications. This way you can set your pricing around the same and learn the market without losing too much money.