Pay Per Click Advertising

2007-04-17 10:41:55

( Web Hosting-SEO-Web Design )



Pay per click (PPC) is an advertising/marketing technique on the internet. When a user clicks on the pay per click advertisement, the advertiser is charged a certain cost, known as cost per click.

There are currently three kinds of PPC engines, namely keyword, product and service engines. Keyword PPCs have advertisers bidding on certain keywords (including product model numbers). Product PPCs, also known as product comparison engines, and Service PPCs allows advertisers to bid on product and service searches, respectively. The results are arranged according to the amount bid by the advertisers, but the user can sort the results by prices.

As an advertiser, you bid for the placement of your ad in the list of results. Meaning, if you have the highest bid among all the advertisers, your offer (product or service) appears first in the list. You are charged the bid amount when a user clicks on your link and enters your site. Professional services firms, mostly members of trade bodies, can also help your pay per click advertising on search engines. Bid management tools are also available, which enable you to test the keywords in different positions in the search results, at different prices and at different times, to find out which combination maximizes your results.

As a web site owner, you can generate income on your site when you avail of pay per click advertising by joining affiliate programs and networks. Pay per click affiliate programs may be run by the advertiser or by third party services. In these programs, you are paid everytime your site’s visitors click on the advertisements on your site. This usually has a lower conversion rate than the pay per impression scheme, which allows you to get paid everytime the advertisement is loaded. A lower conversion rate means that you get paid higher, but in a lower frequency, since you are only paid when the advertisement is clicked.

Variations of pay per click advertising include pay per impression, pay per sale or lead, pay for placement, pay for ranking.

Abusing pay per click advertising results in click fraud, and may be subject to legal consequences.


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