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