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Pay Per Click! What Is It?

by Robert Gantt

Typically Pay Per Click ads are the first results presented following a search query on a major search engine. If consumers then click on an advertiser’s link and visit their site a charge is accrued. There is no charge just for seeing the advertiser’s 3 line ad copy. The consumer must actually click on the link. The quality score determines link position on a results page. It is made up of the advertiser’s bid price and the ad click-through rate also known as ctr.

Though relatively new in the market, Pay per click advertising has evolved rapidly over the last few years. From the beginning when GoTo.Com first used it as a model for their search engine it has proven to be a winner. Before GoTo.Com it was very difficult, if not impossible, for new advertisers to get to the top of the search results on major search engines. All that changed with the advent of the Pay Per Click model. Now the advertiser is free to spend his time picking the best converting keywords and sending visitors to his best landing pages.

There is lots of talk all over the Internet regarding Pay-Per-Click Advertising. Some people swear by it and some say it is waste of your time. Although Pay-Per-Click Advertising can be expensive, if you know your margins and are vigilant it has proven to be very cost effective.

Why? Because there’s something to gain for everyone here; the customer finds the product, the advertiser generates business and profit, and the search engine gets paid for it! With all the analytical tools that are readily available today Advertisers can invest money on the keywords they expect potential customers would enter in search queries.

Currently the most popular search engines offering the Pay-Per-Click model are: Google Adwords, Yahoo Search Marketing and Microsoft Ad Center. Although there are similarities between each of the big three the submission process varies with each search engine. Unless an advertiser is experienced in dealing with the nuances of each engine, it is probably wise to outsource the submission and maintenance to a third party firm.

By paying for search engine traffic advertisers can make sure that the product or service gets listed and is made available to the market . Moreover, it is a total misconception that there won’t be any marketing costs in models like SEO. The amount of money spent in optimizing your keywords, creating in-bound links, understanding and applying the correct keyword density and designing a site that still converts at a reasonable roi might just overshoot what one would have paid to the search engine in exchange for sure visibility!

The pay per click model is tailor made for advertisers seeking quick results. This goes for seasonal products say chocolates, cards and other gifts which become hot selling items during festive season of Christmas. But since the market for these products exists only for a very short period the sellers wants to hog all the limelight during this period. A PPC model assures the advertiser his products or services can be found by the consumer in time to take advantage of the season.

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