19 Nov, 2008 in Pay-Per-Click by

The Basics of Pay Per Click Advertising

Wikipedia defines Pay Per Click Advertising as thus:

Pay per click, or PPC, is an advertising technique used on websites, advertising networks, and search engines for the purpose of allowing websites to advertise for high visibility

With search engines, pay per click advertisements are usually text ads placed near search results; when a site visitor clicks on the advertisement, the advertiser is charged a small amount

Variants include pay for placement and pay for ranking

Pay per click is also sometimes known as Cost Per Click (CPC).

For example, a website owner wants to be found under a particular keyword: limousine service. In searching a particular pay-per-click program, he finds that bids to be found on that phrase range from two cents to five cents per click. Bidding anywhere in that range, or above, will allow his limousine service site to be seen in sponsored results every time a user enters limousine service. For every time a user clicks on the link to the advertiser’s limousine site, the advertiser must pay however much he bid for the phrase, be it two cents or twenty.

Some pay per click programs allow advertisers to set a monthly spending limit. For example, the limousine site owner wants to pay fifty dollars a month for limousine service, bid at two cents per click. This allows him a maximum of 2500 clicks for that phrase, once the link has been clicked through 2500 times, his ad no longer appears in search results until the next month. If the site’s ad is clicked through less than 2500 times that month, the advertiser only pays for the click-through, not the overall impressions.

Pay per click advertising is recommended for newer sites. Yahoo/Overture and Google Adwords are two of the most popular pay per click advertising programs, as both allow for exposure across a number of website and search engines. Overture sponsored listings appear on Yahoo, MSN, and other engines, while Google Adwords also appear as part of the Google AdSense program. Assuming our limousine website owner uses Google Adwords, he can opt for AdSense exposure and send his ad to website related to his content.

The key to a successful pay per click campaign lies in knowing which search terms to bid upon, how much to spend, and knowing which search terms are best relevant to your site. If your site is targeted toward a local audience, consider using localized, narrow phrases for search. If you wish to reach a wider audience, you may consider more generalized terms, though some may require large bids. Pay per click programs offer helpful keywords tools to help with bidding; research the popular sites in your field, know the search algorithms, and bid with care.

Ciniva Web Agency

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