PAY PER CLICK ADVERTISING

PAY PER CLICK ADVERTISING

Definition: Pay Per Click is paying a web site vendor for a visitor's click on an ad that sends them to your web site. Most of the vendors, largest being Google and Yahoo, do not charge you until the visitor actually clicks to your site.

Keyword and Phrase Matching is the purchase of positioning in the search engines at the top for certain keywords and phrases that you believe will bring targeted traffic to your site. In our business, the big ones are "YourTown real estate", Yourtown, State real estate" and similar combinations. Advertisers are actually bidding against each other for top placement on searches for those keywords. There are complex ranking formulas that may not rely solely on highest bidder gets highest placement, but that's the normal method. Again, no payment is made until the visitor clicks to your site.

Pay Per Impression is also offered. In this method, you'll pay very small amounts for each impression, 

Short for pay per click, PPC is an Internet marketing formula used to price online advertisements. In PPC programs the online advertisers will pay Internet Publishers the agreed upon PPC rate when an ad is clicked on, regardless if a sale is made or not.

With pay per click in search engine advertising, the advertiser would typically bid on a keyword so the PPC rate changes. On single website -- or network of content websites -- the site publisher would usually set  a fixed pay per click rate.  Also called cost-per-click (CPC).

PURPOSE OF PAY PER CLICK:

Cost per click, along with cost per impression and cost per order, are used to assess the cost effectiveness and profitability of internet marketing. Cost per click has an advantage over cost per impression in that it tells us something about how effective the advertising was. Clicks are a way to measure attention and interest. Inexpensive ads that few people click on will have a low cost per impression and a high cost per click. If the main purpose of an ad is to generate a click, then cost per click is the preferred metric. Once a certain number of web impressions are achieved, the quality and placement of the advertisement will affect clickthrough rates and the resulting cost per click.

HOW PPC WORK:

PPC advertising is simply advertising your website through the use of the pay-per-click search engines. To grasp an understanding of ppc advertising, you need to understand what a pay-per-click search engine.

A pay-per-click search engine is basically a search engine that takes the guesswork out of getting top-ranking in a search engine and in effect, enables you to buy your rank so to speak.

When using a ppc search engine you bid on keywords or keyword phrases that your targeted prospects may use to find whatever your website offers. When you outbid competitors that have bid on the same keyword or keyword phrase, your website will be ranked over theirs.

Because you "pay-per-click", you only get charged your bid amount for actual visits to your site that result from your ppc advertising rather than being charged a flat fee for placing an ad.

PAY PER CLICK USING GOOGLE ADWORD:

AdWords is Google's pay-per-click (PPC) advertising platform and main source of revenue. In PPC Google marketing, advertisers use AdWords to bid on the keywords they want to trigger their sponsored ads. Google chooses ads to be displayed and the ads' position based on each user's maximum bid and Quality Score. Quality Score is determined by factors like:

• Relevance of ad copy to the keyword
• Relevance of the ad to its corresponding landing page
• The ad's click-through rate (CTR)
• Historical account performance
• Other relevance and performance factors

Quality Score can affect your Google pay-per-click rates. Higher Quality Scores mean more impressions at lower costs, lowering your cost per click and cost per action.