Pay per click marketing is an advertising model used on websites, advertising networks, and search engines where advertisers only pay when an internet surfer clicks on an ad to visit the advertiser’s website. Businesses use pay-per-click, or PPC, advertising to generate sales to their target market from their web site.
Here’s one of the ways PPC works, business design a short ad that links to their website when it’s clicked on. The publisher makes sure the ad pops up when a certain keyword, from a predetermined list made by the advertiser, is input into a search engine. Then the advertiser pays a fee every time someone clicks on the ad after searching for a particular word or phrase. This allows for advertisers to pay for better visibility on a search engine results page regardless of where they naturally rank in search engines when certain keywords are entered. The paid search results are usually shown as the top few ads on the search results page as well as the ads shown down the left side of the page. The goal of PPC is to get the most conversions for the lowest price. There are 2 ways to do this: bid based PPC and flat rate PPC.
In bid-based pay-per-click marketing, the position of the ad is determined by the amount of money and advertiser bids compared to the bids of the competitors who are bidding on the same keywords. The quality of the advertisers website as well as well as the quality of the ad are also determining factors and could mean the difference between having the first position or the third position after placing the highest bid. In the end the advertiser tells the host how much they are willing to pay for an ad spot for certain keywords. Then advertisers pay for each click they receive based on the rate the keyword went for. These rates are the basic rates however, advertisers can pay a higher amount for more visibility.
In the flat-rate PPC marketing model, advertisers and publishers agree upon a fixed amount that will be paid for each click in advance. Content sites commonly charge a fixed price-per-click rather than use a bidding system. This avoids situations where bidders are constantly adjusting their bids by very small amounts to see if they can still win the auction while paying just a little bit less per click.
PPC marketing can get better results over just placing a banner ad on a website. One of the reasons PPC is more effective is because it tracks visitor behavior, giving the advertiser helpful information about their target demographic. Since the advertiser is paying for each visitor to view their website, it makes sense that they structure their web pages so that they are as user friendly as possible. The more relevant the landing pages are the higher the quality score, and the more targeted the campaign will be, resulting in more conversions, and a lower cost-per-click.
PPC marketing is a great way to get targeted website traffic inexpensively. With all the PPC search engines out there it is important that you make an educated decision when it is time to start your campaign. It is not unusual to have a lot of questions or concerns if you are just starting out. If you would like help from an experienced PPC campaign manager contact Big Squid Interactive and they will help you decide if PPC is a viable option for your business.
To find out more information about PPC Marketing visit Big Squid Interactive at http://bigsquidinteractive.com and learn more about PPC, SEO, and Social Media!