Pay Per Click Advertising

Pay per click (PPC) is an advertising technique used on websites, advertising networks, and search engines.

Pay Per Click Advertising is by far the most direct marketing system ever invented. You actually get to place your ad directly in front of a prospect that has searched on a term related to your product or business. Your prospect is proactively looking for what you have to offer. You cannot get a more targeted form of advertising.

Advertisers bid on “keywords” that they believe their target market (people they think would be interested in their offer) would type in the search bar when they are looking for their type of product or service. For example, if an advertiser sells red widgets, he/she would bid on the keyword “red widgets”, hoping a user would type those words in the search bar, see their ad, click on it and buy. These ads are called “sponsored links” or “sponsored ads” and appear next to and sometimes above the natural or organic results on the page. The advertiser pays only when the user clicks on the ad.

Depending on the search engine, minimum prices per click start at US$0.01 (up to US$0.50). Very popular search terms can cost much more on popular engines

PPC engines can be categorized in “Keyword”, “Product”, “Service” engines. However, a number of companies may fall in two or more categories. More models are continually evolving. Currently, pay per click programs do not generate any revenue solely from traffic for sites that display the ads. Revenue is generated only when a user clicks on the ad itself.

Written by on February 27th, 2007 with comments disabled.
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