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