Literally interpreted, econometrics means “economic measurement.” Although measurement is an important part of econometrics, the scope of econometrics is much broader, as can be seen from the following quotations: Econometrics, the result of a certain outlook on the role of economics, consists of the application of mathematical statistics to economic data to lend empirical support to the models constructed by mathematical economics and to obtain numerical results.
Econometrics may be defined as the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference.
Econometrics may be defined as the social science in which the tools of economic theory, mathematics, and statistical inference are applied to the analysis of economic phenomena.
Econometrics is concerned with the empirical determination of economic laws.
The art of the econometrician consists in finding the set of assumptions that are both sufficiently specific and sufficiently realistic to allow him to take the best possible advantage of the data available to him.
Econometricians are a positive help in trying to dispel the poor public image of economics (quantitative or otherwise) as a subject in which empty boxes are opened by assuming the existence of can-openers to reveal contents which any ten economists will interpret in 11 ways.
The method of econometric research aims, essentially, at a conjunction of economic theory and actual measurements, using the theory and technique of statistical inference as a bridge pier.
METHODOLOGY OF ECONOMETRICS
How do econometricians proceed in their analysis of an economic problem?
That is, what is their methodology? Although there are several schools of thought on econometric methodology, we present here the traditional or classical methodology, which still dominates mpirical research in economics and other social and behavioral sciences.
Broadly speaking, traditional econometric methodology proceeds along the following lines:
1. Statement of theory or hypothesis.
2. Specification of the mathematical model of the theory
3. Specification of the statistical, or econometric, model
4. Obtaining the data
5. Estimation of the parameters of the econometric model
6. Hypothesis testing
7. Forecasting or prediction
8. Using the model for control or policy purposes.
Source: Basic Econometric 4th Ed. Gujarati.(2004)
Friday, July 25, 2008
What are pay per click search engines?
Definition of the Pay-Per-Click Process and PPC Search Engines
Pay-per-click (PPC) search engines are those that offer the marketing option called "pay-per-click" to users. PPC is defined as the guaranteed placement of a small "ad" on the search results page for a specific keyword or keywords in return for a specified payment, but ONLY when a visitor clicks on that ad. The advertiser pays nothing to appear on the results page; they only pay the amount they have agreed to (or bid for) when someone actually clicks on their ad and is taken to their landing page; therefore, the term "pay per click".
A PPC listing on a search engine results page typically consists of a title, which usually is your website's name or perhaps a short heading (around 50 characters maximum) and also a short (usually no more than 200 characters long) description of your service or some promotional wording. Some PPC search engines strictly control the text that can appear in the listing, while others are more open to using the advertiser's own text.
Basic Steps to a Constructing a Pay-Per-Click Campaign
The first step in putting together a PPC campaign is to decide your budget and what level of risk you are willing to take, for both will affect which PPC search engine you ultimately choose. As one would expect, the larger properties are less risky endeavors, since they already have excellent market coverage and tend to offer a lot of assistance to their users, but they also are the most expensive in terms of the amount of money you must spend to acquire a top ranking based on a specific keyword or group of keywords.
There are plenty of free, independent tools available to help you in your research of keywords which will tell you the current bid price for certain words or phrases on the different PPC search engines.
Once you have decided upon which PPC search engine you are going to use, have put together you ad, and decided the keywords you wish to have your ad appear under, register with the search engine, fill out the necessary information to open an account, and then begin the bidding process for the keywords you have decided upon.
When you first register your keywords with the search engine you have chosen (and some large businesses will have upwards of thousands of keywords they use), you will also specify the maximum amount you are willing to bid for those keywords. The price of a keyword can range anywhere from 1 cent to $10 or more, depending upon its popularity as a search term and the search engine itself.
Key Tips to Keep in Mind While Running a Pay-Per-Click Campaign
There is sometimes fierce competition for specific keyword(s) on a given PPC search engine. Most PPC search engines automate the bidding process for you (stopping of course when they reach the maximum bid you have indicated), but personal involvement and the judicious use of third-party tools by the user is advisable to ensure that the tracking mechanisms built into the search engine's control panel are in sync with what is actually happening.
The business that bids the highest amount of money for a specific keyword will be ranked first in the PPC results, the second-highest bidder will be ranked second, etc. Typically, PPC search engines limit the number of PPC ads on a results page to less than 10, and research has shown that unless you are in the first 3 or 4 of the PPC ads, you are much less likely to be investigated by visitors.
Because the competition is so fierce in this market right now, most PPC search engines do not require a minimum amount of money be invested in a campaign - in fact, some will even give you a nominal amount of money to begin your campaign with. Some may require a deposit of a small amount (in the neighborhood of $25 to $50), but this money is then applied to your account.
Be sure to check out the fine print in the agreement to be clear on minimums required, deposits required, what happens if you decide to cancel your campaign. Be prepared to spend a fair amount of time monitoring your campaign in the beginning.
Is a Pay-Per-Click Campaign the Right Investment for my Business?
Because of the fierce competition in the pay-per-click market, it can be relatively easy and inexpensive to give PPC a try. PPC search engines offer varying amounts of support and some are easier to use than others, but the opportunity to ensure placement of your ad without necessarily investing a large amount of your marketing dollar, makes PPC an extremely attractive option and one that few business owners should completely ignore as a potential marketing technique.
To help you, a multitude of tools have been developed to automatically monitor and bid, track your Return on Investment (ROI), craft your PPC ads, and help you choose alternate keywords that may be just as effective but cost much less on the particular PPC search engine they wish to use.
Although there are hundreds of PPC search engines on the Internet, there is a core group of 5 to 10 PPC search engines that because of size, brand name, and reputation are the preferred choices for most PPC ad campaigns. These major properties are now experimenting with many variations on the basic premise, including the ability to use PPC on a local basis, extending it from keywords to context and behavior of users, offering their versions of tools that help make the process easier especially for the novice, and decreasing the amount of time it takes to see results from your campaign from hours to minutes.
Once you've mastered the basics of PPC and have learned more about the options, tools, and search engines that offer this form of marketing, you will be in a position to fine tune your campaigns and perhaps try some of the niche-market PPC search engines, which offer lower keyword costs and may be more suited to your product/service.
Keep in mind that even companies with experience in online marketing struggle with the intricacies of the techniques needed to judge which PPC search engine to use and how best to play the bidding game.
And so we come to the bottom line - PPC sounds like a great option, but what does it really cost and is it worth it for my specific business? Each campaign is different, depending upon the bid amounts, number of actual click throughs and the Return on Investment (ROI) generated.
Our main goal at Pay Per Click Universe is to help educate you to make the best choices by offering free, totally unbiased reviews of PPC search engines and the tools designed to be used in conjunction with the PPC process, both to help you with understanding the process and to evaluate its usefulness to you as a marketing tool.
Now that we’ve explained the process a little more in depth, take a look at our reviews and use the information we have provided to help you plan a campaign or fine tune your current campaigns to get the most from the marketing dollars you choose to place in what we consider to be a very competitive, efficient, and effective means of Internet marketing – the pay-per-click search engine marketplace.
(Taken from: payperclickuniverse.com)
Pay-per-click (PPC) search engines are those that offer the marketing option called "pay-per-click" to users. PPC is defined as the guaranteed placement of a small "ad" on the search results page for a specific keyword or keywords in return for a specified payment, but ONLY when a visitor clicks on that ad. The advertiser pays nothing to appear on the results page; they only pay the amount they have agreed to (or bid for) when someone actually clicks on their ad and is taken to their landing page; therefore, the term "pay per click".
A PPC listing on a search engine results page typically consists of a title, which usually is your website's name or perhaps a short heading (around 50 characters maximum) and also a short (usually no more than 200 characters long) description of your service or some promotional wording. Some PPC search engines strictly control the text that can appear in the listing, while others are more open to using the advertiser's own text.
Basic Steps to a Constructing a Pay-Per-Click Campaign
The first step in putting together a PPC campaign is to decide your budget and what level of risk you are willing to take, for both will affect which PPC search engine you ultimately choose. As one would expect, the larger properties are less risky endeavors, since they already have excellent market coverage and tend to offer a lot of assistance to their users, but they also are the most expensive in terms of the amount of money you must spend to acquire a top ranking based on a specific keyword or group of keywords.
There are plenty of free, independent tools available to help you in your research of keywords which will tell you the current bid price for certain words or phrases on the different PPC search engines.
Once you have decided upon which PPC search engine you are going to use, have put together you ad, and decided the keywords you wish to have your ad appear under, register with the search engine, fill out the necessary information to open an account, and then begin the bidding process for the keywords you have decided upon.
When you first register your keywords with the search engine you have chosen (and some large businesses will have upwards of thousands of keywords they use), you will also specify the maximum amount you are willing to bid for those keywords. The price of a keyword can range anywhere from 1 cent to $10 or more, depending upon its popularity as a search term and the search engine itself.
Key Tips to Keep in Mind While Running a Pay-Per-Click Campaign
There is sometimes fierce competition for specific keyword(s) on a given PPC search engine. Most PPC search engines automate the bidding process for you (stopping of course when they reach the maximum bid you have indicated), but personal involvement and the judicious use of third-party tools by the user is advisable to ensure that the tracking mechanisms built into the search engine's control panel are in sync with what is actually happening.
The business that bids the highest amount of money for a specific keyword will be ranked first in the PPC results, the second-highest bidder will be ranked second, etc. Typically, PPC search engines limit the number of PPC ads on a results page to less than 10, and research has shown that unless you are in the first 3 or 4 of the PPC ads, you are much less likely to be investigated by visitors.
Because the competition is so fierce in this market right now, most PPC search engines do not require a minimum amount of money be invested in a campaign - in fact, some will even give you a nominal amount of money to begin your campaign with. Some may require a deposit of a small amount (in the neighborhood of $25 to $50), but this money is then applied to your account.
Be sure to check out the fine print in the agreement to be clear on minimums required, deposits required, what happens if you decide to cancel your campaign. Be prepared to spend a fair amount of time monitoring your campaign in the beginning.
Is a Pay-Per-Click Campaign the Right Investment for my Business?
Because of the fierce competition in the pay-per-click market, it can be relatively easy and inexpensive to give PPC a try. PPC search engines offer varying amounts of support and some are easier to use than others, but the opportunity to ensure placement of your ad without necessarily investing a large amount of your marketing dollar, makes PPC an extremely attractive option and one that few business owners should completely ignore as a potential marketing technique.
To help you, a multitude of tools have been developed to automatically monitor and bid, track your Return on Investment (ROI), craft your PPC ads, and help you choose alternate keywords that may be just as effective but cost much less on the particular PPC search engine they wish to use.
Although there are hundreds of PPC search engines on the Internet, there is a core group of 5 to 10 PPC search engines that because of size, brand name, and reputation are the preferred choices for most PPC ad campaigns. These major properties are now experimenting with many variations on the basic premise, including the ability to use PPC on a local basis, extending it from keywords to context and behavior of users, offering their versions of tools that help make the process easier especially for the novice, and decreasing the amount of time it takes to see results from your campaign from hours to minutes.
Once you've mastered the basics of PPC and have learned more about the options, tools, and search engines that offer this form of marketing, you will be in a position to fine tune your campaigns and perhaps try some of the niche-market PPC search engines, which offer lower keyword costs and may be more suited to your product/service.
Keep in mind that even companies with experience in online marketing struggle with the intricacies of the techniques needed to judge which PPC search engine to use and how best to play the bidding game.
And so we come to the bottom line - PPC sounds like a great option, but what does it really cost and is it worth it for my specific business? Each campaign is different, depending upon the bid amounts, number of actual click throughs and the Return on Investment (ROI) generated.
Our main goal at Pay Per Click Universe is to help educate you to make the best choices by offering free, totally unbiased reviews of PPC search engines and the tools designed to be used in conjunction with the PPC process, both to help you with understanding the process and to evaluate its usefulness to you as a marketing tool.
Now that we’ve explained the process a little more in depth, take a look at our reviews and use the information we have provided to help you plan a campaign or fine tune your current campaigns to get the most from the marketing dollars you choose to place in what we consider to be a very competitive, efficient, and effective means of Internet marketing – the pay-per-click search engine marketplace.
(Taken from: payperclickuniverse.com)
Why should you outsource your Pay-Per-Click campaign to an agency?
8 reasons for outsourcing pay-per-click campaigns
Here are eight reasons why you should consider outsourcing your Pay-Per-Click campaign to an experienced agency;
• Pay-Per-Click agencies share special relationships with the search engines, allowing them to upload data quicker and resolve issues faster with premium account managers. This prioritised service provides better results for the agencies.
• Most agencies have internally developed bespoke toolsets allowing them to optimise their campaigns and achieve a better return-on-investment. Agencies are constantly adjusting their campaigns and have the knowledge to respond to any data shifts, whereas many marketers may not.
• Pay-Per-Click is what agency staff live and breathe day-in, day-out. PPC professionals continuously beta test new tools and are the first to know about the latest software (and are often first to utilise it for their campaigns).
• Pay-Per-Click specialists use the latest bid-management software to ensure all keyphrases are performing well at a low cost-per-click.
• On average agencies achieve better click-through-rates than marketers, with agencies at 3.4% and marketers at 2.8% [1]
• Agencies can provide comprehensive reporting and ROI analysis.
• Pay-Per-Click achieves higher conversion rates, for both Search Engine Optimisation and Pay-Per-Click in particular, with agencies achieving an average of 6.8% and marketers achieving 5.4%. [2]
• "Good Pay-Per-Click companies are well worth the cost as they will always make you more money than you would otherwise make."
(By Tom Bennison , from payperclicksearchengines.com)
Here are eight reasons why you should consider outsourcing your Pay-Per-Click campaign to an experienced agency;
• Pay-Per-Click agencies share special relationships with the search engines, allowing them to upload data quicker and resolve issues faster with premium account managers. This prioritised service provides better results for the agencies.
• Most agencies have internally developed bespoke toolsets allowing them to optimise their campaigns and achieve a better return-on-investment. Agencies are constantly adjusting their campaigns and have the knowledge to respond to any data shifts, whereas many marketers may not.
• Pay-Per-Click is what agency staff live and breathe day-in, day-out. PPC professionals continuously beta test new tools and are the first to know about the latest software (and are often first to utilise it for their campaigns).
• Pay-Per-Click specialists use the latest bid-management software to ensure all keyphrases are performing well at a low cost-per-click.
• On average agencies achieve better click-through-rates than marketers, with agencies at 3.4% and marketers at 2.8% [1]
• Agencies can provide comprehensive reporting and ROI analysis.
• Pay-Per-Click achieves higher conversion rates, for both Search Engine Optimisation and Pay-Per-Click in particular, with agencies achieving an average of 6.8% and marketers achieving 5.4%. [2]
• "Good Pay-Per-Click companies are well worth the cost as they will always make you more money than you would otherwise make."
(By Tom Bennison , from payperclicksearchengines.com)
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