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