19 Oct 2010

What is pay per click advertising?

Pay per click advertising (PPC) or cost per click advertising (CPC) is the method by which search engines monetise their search results. Search engines place relevant ad’s related the search query, in Google (the largest of the search engines these are known as sponsored links.

These PPC ads are sold on an auction basis which can be compared to a simple supply and demand costing matrix – the more clicks or impressions there are the less they cost, the more people that demand the impressions or clicks the more the cost goes up. Advertisers can bid any amount of money to buy that search term. Bid the most and you have a good chance of ranking number 1 or being the first ad displayed at the top or the right of the page.

There are also other facts that determine the ad position, you can’t simply buy the term and bid the most and expect to be at the top of the page, there is also a factor called ad relevance. Ad relevance (Google) is the relevance of the ad and landing page that you are advertising to the search word or keyword that you are buying. Google wants to display only the most relevant ad’s so that its users so that they click more often. The more relevant you are to a term, the higher the ad relevance. The higher the ad relevance the less you have to pay to be top ranking or in a premium position.

Advertisers are charged when a potential custom clicks an ad, this cost is based on the cost per click at the time (any value up to your maximum bid) and charged accordingly. Daily budgets can be set to limit spend so you ca always be in cotrol of your budgets making Pay per click an excellent method for both large and small business to promote themselves in the internet.

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10 comments:

Rashmi said...

Thanks for the write up!I just liked the article, It sounds like you want a fairly restrictive,looks Very refreshing post with attractive ideas.Hope you all had a Merry Christmas and a Happy New Year. Regards,

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Kinneth said...

An agency can improve visibility and rankings in search engine domains such a Google and Yahoo which will then ultimately increase the number of clicks of the business website by us. keeping integrated fundraising

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24hourlocksmithMelbourne said...

I thought finding a company that will help me provide all the services that all small business need is a tough one.

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Unknown said...

PPC is a type of provided internet advertising that is used on a variety of websites, including google, where the marketer only will pay if a web user mouse clicks their ad. Hence the headline, ‘pay per click.’When our clients ask us to determine Pay Per Click, we tell them that PPC is a very cost-effective means to get their website noticed by their potential audience while our other Internet marketing strategies are progressively helping their website achieve their natural ranking potential.
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Unknown said...

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chasingbutterflies said...

This company named results driven marketing does free audits on what keywords are producing the most wasted spend id consider talking to them call them at 888-642-6026

Unknown said...

Pay-Per-Click advertising offers a number of benefits that you just can’t find in other marketing platforms and with our PPC management service you will experience superior cost control, detailed reporting on several important metrics, as well as ROI and revenue tracking.

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Unknown said...

Hire now h1SKS Web Studios who is one of the best cost effective pay per click agency in Essex.

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