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Article #81: An Overview of Pay Per Click (PPC) Advertising

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Pay per click (PPC) advertising has advertisers site. Early in 2005, the
revolutionized advertising on the policy changed and now you must link from
Internet. In order to understand PPC the Google ad to a "landing page" (page
advertising, let's discuss PPC, its where the searcher will be directed when
history, and some background information. the ad is clicked). The landing page is
Let's start our discussion with a used to presell the readers and then send
definition of pay per click advertising them on to the sales page of the company
from Wikipedia. selling the service or product.
From Wikipedia, the free encyclopedia:- PPC advertising is a great way to make
Pay per click (PPC) is an advertising money as an affiliate. You identify a
technique used on websites, advertising company that you want to promote,
networks, and search engines. identify the keywords that searchers will
With search engines, pay per click use when searching for the company's
advertisements are usually text ads products, and set up a landing web page
placed near search results; when a site to receive the click from the SE. On the
visitor clicks on the advertisement, the landing page, you place ad copy to sell
advertiser is charged a small amount. the reader on clicking to the company's
Variants include pay for placement and site that you are representing. If the
pay for ranking. Pay per click is also user clicks to the company site and takes
sometimes known as Cost Per Click (CPC). the desired action (purchasing a product
While many companies exist in this space, or completing a lead form), you are paid
Google AdWords and Yahoo! Search for the completion of the action. This
Marketing, which was formerly Overture, will be a percent of the sale of a
are the largest network operators as of product or a flat payment for a sales
2006. MSN has started beta testing with lead.
their own PPC services MSN adCenter. Anyone can sign up for these programs and
Depending on the search engine, minimum it is quite easy to do so. You can make
prices per click start at US$0.01 (up to money using this technique. However,
US$0.50). Very popular search terms can before you think this will make you rich
cost much more on popular engines. Abuse overnight, let's get a little education
of the pay per click model can result in on how it works.
click fraud. When an SE presents your ad to a user, it
Pay per click advertising covers the is called an "impression". When a user
three main search engines, but let's clicks on the ad, it is called a "click".
concentrate on Google since it has the The SE develops a ratio called the click
largest market share of searches on the through rate (CTR) by dividing the clicks
Net. by the impressions. If your CTR remains
Pay per click advertising is where an high enough (this varies by SE's, but
advertiser creates an ad for a product or usually above one percent is sufficient),
service that will be presented to a your ad will continue to run. If it does
search engine ("SE") user when the user not perform well, the SE will inactivate
searches on a specific key word or key it until you change something about the
word phrase. When you use an SE, you see ad to make it perform better.
the ads when you receive the results of Your account with the PPC program will
the search. You have noticed that the ads have reports that show you the
are about the same information that you impressions, the clicks, the CTR. It will
entered into the search. This is based on also show you your average cost per
the keywords for which the ads are click, the total cost for the keyword
targeted. (clicks time average cost), and the
The advertiser that puts the ad in the SE average position of the ad in the times
agrees that it will pay a certain amount it was displayed (first, second, third,
to the SE each time the ad is clicked by etc.).
a user. The order of presentation of the This is an exciting business model for
ads on the search engine results page creating supplemental income. If you want
depends on the price that the advertiser to learn more about Google Adwords, buy
agrees to pay and the historical the "Adwords Bible" by Chris Chandler
click-through rates of all ads shown for called Google Cash.
a given search. The best way to learn about PPC
This advertising concept has advertising is to set up an account on
revolutionized Internet advertising and Google Adwords and experiment with a
has created Google Adwords, Yahoo Search campaign. You can set a budget to prevent
Marketing, and Microsoft Adcenter. In the campaign from costing you too much if
2000 Google was the first to start a your campaign results in your paying more
program of this type and it has developed for clicks than you make from your sales.
into Google's flagship product from which Be cautious on your first few campaigns
it derives the majority of its revenue. and limit your potential exposure.
Originally, Google permitted the Adwords Good luck with your PPC campaigns.
ad to send the user directly to the Copyright 2006 John Howe, Inc.






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