PPC Pay Per Click

Pay Per Click Advertising Outline

The article below will give you a basic explanation of what Pay Per Click (PPC) is all about. There are basically 3 major players in the Pay Per Click industry, Google Adwords, Yahoo Marketing and MSN Adcenter. Other minor PPC engines include Find what, Go click, Looksmart, Kanoodle and other, however they are synonymous with click fraud and it's best to stay clear of them. Pay Per Click search engines are keyword auction systems. The more you pay the more you listing will appear at the top of the page in search engine results. Bidding is done in real time and competitors can bump you up or down the Pay Per Click listings depending on how much they are willing to bid on the keywords. Pay Per Click image

Pay Per Click and the importance of Geo Targeting

When doing your PPC campaign, it's very important to target your audience. It is important to do this to increase your click through ratio but not your cost per click unlike what some online PPC marketers might think. Geotargeting is the technique of targeting customers in a specific geographical location. Search engines can now determine where (country, city) your clients are searching from. So a client searching for "web site design services in Vancouver BC", Canada in Nigeria will not find you if you don't want him to and you will not need to pay for him to visit your website (PPC). However, a client in Vancouver doing the same search will find you with ease since you planned your pay per click strategy for the local Vancouver web design audience.

However, while this may increase you click through ratio, it will not reduce you cost per click. The reason for this is being that companies with no specific geographical location will be bidding on the same local keywords as you since they can provide a product or service from anywhere around the world. Brokers will also be competing with you in your local geotargeted Pay Per Click campaign.

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Pay Per Click (PPC)

Pay Per Click (PPC) is an advertising model used on websites, advertising networks, and search engines where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they believe their target market would type in the search bar when they are looking for a product or service. When a user types a keyword query matching the advertiser's keyword list, the advertiser's ad may appear on the search results page. These ads are called "sponsored links" or "sponsored ads" and appear next to, and sometimes, above the natural or organic results on the page. The advertiser pays only when the user clicks on the ad. Pay Per Click advertising is a search engine marketing technique.

Pay Per Click ads may also appear on content network websites. In this case, ad networks such as Google Adsense and Yahoo! Publisher Network attempt to provide ads that are relevant to the content of the page where they appear, and no search function is involved.

While many companies exist in this space, Google AdWords, Yahoo! Search Marketing, and MSN adCenter are the largest network operators as of 2007. Depending on the search engine, minimum prices per click start at US$0.01 (up to US$0.50). Very popular search terms can cost much more on popular engines. Arguably this advertising model may be open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against this. For Google Adwords it's best to stick to network targeting, the content network on the other hand is synonymous with click fraud and a waste of both time and money.

Categories

PPC engines can be categorized into two major categories "Keyword" or sponsored match and "Content Match". Sponsored match display your listing on the search engine itself whereas content match features ads on publisher sites and in newsletters and emails.

There are other types of PPC engines that deal with Products and/or services. Search engine companies may fall into more than one category. More models are continually evolving. Pay Per Click programs do not generate any revenue solely from traffic for sites that display the ads. Revenue is generated only when a user clicks on the ad itself.

Keyword PPC

Advertisers using these bid on "keywords", which can be words or phrases, and can include product model numbers. When a user searches for a particular word or phrase, the list of advertiser links appears in order of the amount bid. Keywords, also referred to as search terms, are the very heart of Pay Per Click advertising. The terms are guarded as highly valued trade secrets by the advertisers, and many firms offer software or services to help advertisers develop keyword strategies. Content Match, will distribute the keyword ad to the search engine's partner sites and/or publishers that have distribution agreements with the search engine company.

As of 2007, notable PPC Keyword search engines include: Google AdWords, Yahoo! Search Marketing, Microsoft adCenter, Ask, LookSmart, Miva, Kanoodle, Yandex and Baidu. Findwhat is notorious for click fraud and advertisers should be very carerul when bidding for keywords on MIva.

Online Comparison Shopping Engines

"Product" engines let advertisers provide "feeds" of their product databases and when users search for a product, the links to the different advertisers for that particular product appear, giving more prominence to advertisers who pay more, but letting the user sort by price to see the lowest priced product and then click on it to buy. These engines are also called Product comparison engines or Price comparison engines.

Some Online Comparison Shopping engines such as Shopping.com use a PPC model and have a defined rate card. [2] whereas others such as Froogle (also know as Google Product Search) do not charge any type of fee for the listing but still require an active product feed to function.[3]

Noteworthy PPC Product search engines include: Shopzilla, NexTag, Shopping.com and Pricegrabber.com.

Service PPC

"Service" engines let advertisers provide feeds of their service databases and when users search for a service offering links to advertisers for that particular service appear, giving prominence to advertisers who pay more, but letting users sort their results by price or other methods. Some Product PPCs have expanded into the service space while other service engines operate in specific verticals.

Noteworthy PPC services include NexTag, SideStep, and TripAdvisor.

Pay per call

Similar to Pay Per Click, pay per call is a business model for ad listings in search engines and directories that allows publishers to charge local advertisers on a per-call basis for each lead (call) they generate. The term "pay per call" is sometimes confused with "click to call". Click-to-call, along with call tracking, is a technology that enables the “pay-per-call” business model.

Pay-per-call is not just restricted to local advertisers. Many of the pay-per-call search engines allows advertisers with a national presence to create ads with local telephone numbers.

According to the Kelsey Group, the pay-per-phone-call market is expected to reach US$3.7 billion by 2010.

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