Nov 03

DEFINING PAY-PER-CLICK ADVERTISING

Tag: Internetadmin @ 2:11 am

If you are a website owner and are looking for ways to market your website, Pay-Per-Click Advertising is definitely something you should look into. Pay-Per-Click advertising, now commonly known as PPC, is a model developed by search engines. Through this, advertisers need not spend on ineffective advertising. Because they only have to pay when internet users clicks a link to their website, advertisers can be sure that they spend only on the traffic their advertisements generate. This type of advertising model is commonly used by search engines and content network websites.

For search engines, PPC works very simply. Website owners study the content of their web pages and gather keywords their target market would most likely enter in search engine query boxes. For each of these keywords, advertisers have to place a bid price. When an internet user searches for these keywords, the links to the website appear as sponsored links. Depending on the search engine, these sponsored links may either appear in a separate box at the side of the page or at the top of the list with some distinction from the rest of the search results. The higher the bid of the website owner, the higher the link will appear on the list making it more visible to search engine users. Each time internet users click on sponsored links, the advertiser will be charged the bid price.

PPC advertisements are also very effective in content network websites. Here, website owners leave spaces in their websites for advertising and subscribe to ad networks. These ad networks’ role is to provide links to websites whose content are relevant or similar to that of the page where they can be found. The most popular of these ad networks include Google Adsense and Yahoo! Publisher Network. Unlike in search engines, keywords do not have to be searched. They simply appear on the space provided in the website. Visits to these links from the websites wherein they appear are tallied. Upon reaching a predetermined number of visits, the ad network must pay the website owner. This model can also be used by direct advertising. This way, website owners who want to advertise in other web pages may do so using the same model without having to go through ad networks.

Although PPC is known to be a very effective online marketing strategy, they can be very costly. Bids per click can go anywhere from US$0.01 to US$999.99. If you bid the maximum for a keyword or key phrase in order to appear at the top of the search results, each time an internet user visits your website through these sponsored links, you will be charged US$999.99.

For this reason, it is not enough to bid high to appear at the top of the list. You must first determine how much of your budget you can actually spend to become one of these sponsored links in order to still generate income per user’s visit.

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