Monday, January 12, 2009

What Is PPC Advertising Anyway?

By Alex Plana

PPC is short for Pay-Per-Click and is a form of online advertising. Ads in the form of text or images are displayed in search engines, blogs, and other websites. Advertisers bid on keywords and anytime someone clicks on their ad, they are charged for each click.

There are many advertising networks that host PPC campaigns, but the most common are Google AdWords, Yahoo Search Marketing, and MSN adCenter. Google, because of its ability to deliver significantly more ad impressions that any other search engine, is the most widely utilized. Advertisers typically pay more in CPC (Cost-Per-Click) as a result of Googles dominance.

The cost an advertiser pays for a click is dependent on type of keywords being targeted. Typically, higher traffic keywords result in higher CPC and less traffic keywords have a lower CPC. Keyword costs will be different from one advertiser to another due to the variety of factors that search engines use to help determine what an advertiser's minimum CPC should be.

A key question is how search engines determine how much to charge. This is done primarily by measuring the relevancy of an offer with respect to the keywords being targeted by the advertiser. Google uses a Quality Score (QS) to determine the relevancy of key terms used in splash pages and ads. Lowering a keywords CPC and increased ad position is a measurable result of a high quality score. Quality scores are improved by high Click-Through-Ratios (CTRs) on quality landing pages.

Many Search Engine Results Pages (SERPs) feature PPC ad placements on the top and right side, and are they are usually named with Sponsored Links, Sponsored Results, Sponsored Sites, or a similar term. The remaining area of a SERP contains natural or SEO (Search Engine Optimization) listings.

PPC has emerged as one of the more popular internet advertising tools. The main reasons for this is that with PPC, the advertiser only pays for results. Results being in the form of clicks and clicks resulting to a visitor going to a website. Another reason is that PPC campaigns can be displayed in the search engines fairly quick (within minutes to a few days). This is much better then SEO where it can take up to several months to rank for the same keywords within their SERPs. In addition, if executed correctly, PPC can provide a great profit source for a business.

It is fairly simple to set up a PPC campaign in Google, Yahoo, or MSN. However, getting it right the first time can prove to be a challenge for most individuals. There are many things to consider when putting a PPC campaign together. The keywords chosen will make or break the campaign. Additional success will hinge on continuous testing, effective landing page creation, and intuitive bid optimization.

Many successful organizations are taking complete advantage of PPC advertising for branding and profit reasons. Even though many people can manage their own PPC campaigns, it's highly recommended to use search marketing professionals to manage the campaigns. PPC is constantly evolving and with more businesses trying to take advantage of this opportunity, the need for high-level search marketing techniques will play an important role in a success in PPC advertising. - 16492

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