Pay Per Click Advertising

Pay Per Click advertising (PPC) as the phrase expresses is an advertising system setup by the search engines where you Pay each (and every) time your advertisement is clicked on delivering a visitor to your website. PPC systems operate like an auction, you place a bid for the search term you want to be listed for, your ad then is displayed by the search engine ranked in their sponsored results based upon how your bid ranks amongst all bids for that search term. If your bid is the highest, your ad will be listed in the top position, if your bid is the 5th highest in the 5th position and so on. The exception to this standard auction format is Google Adwords, Google factors in the amount of clicks your ad generates (and associated total revenue). On Adwords if your ad generates the highest total revenue for Google your ad will rank 1st regardless of the actual bid you place.

With PPC advertising you determine your maximum bid and you set your daily budget. As an example if you bid $2.00 per click and the next highest bidder bids $1.50 you will only have to pay $1.51 per click. One cent higher than the next lower bid. You essentially would have $.50 insurance that you'll maintain the top position. In this example if you set your budget to $10/day you will receive a maximum of 6 clicks each day after which your ad will no longer be shown. Besides cost this is the major difference between PPC and Organic search, if your website ranks highly in the organic search it always appears, all day, every day.

Pay Per Click advertising may be right for your particular product or service. If the current bid levels for your target search terms are conducive to a positive ROI then PPC advertising may be your best choice.

There are many PPC ad programs of which Google Adwords and Yahoo's Overture programs are the most popular. Adwords appear on Google, AOL and a few other engines plus on the entire network of websites that display Google Adsense ads. Overture ads currently display on Yahoo, MSN and Yahoo's recently released program of ads on other websites.

Contact LancoDesign.com to determine if you should participate in PPC advertising and learn about our PPC advertising management programs.

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