What is Pay per Click Advertising

Pay per click is an advertising model applied in internet marketing. The simple explanation is: an advertiser wants to post advertisement of their good or services in different other websites. When visitors click on that advertisements shown in other websites normally known as host sites, then the advertiser pay to that hosting site for every click and this is known as pay per click advertisement or PPC.

Advertisers do this through different search engines by bidding on keyword phrases relevant to their product. Different search engines have different ay per click advertisement packages like Google has Google AdWords and Microsoft has AdCenter.

Pay per click is the amount that advertisers pay on the other hand cost per click or CPC is the sum of money paid by the marketers to advertisement publishing websites for a single click which redirects visitors to the marketer’s website. Right now Google’s AdWords is the top PPC advertising model to the advertisers. Yahoo’s Search Marketing and Microsoft’s AdCenter is also getting popularity. All these three programs work under a bid-based model but the cost per click fluctuates based on the search engine and the competition for the given keywords.

PPC is a great way to generate traffic to the website. Although marketers have to be exert to get good PPC result because they will have to pay for every click but in return if they fail to make sale then this is completely worthless.

Advertisers bid for the PPC. If they bid $0.10 per click on a particular advertisement if that is the highest bid then the advertisement will be show up in the first page. If 100 visitors clicked on that advertisement then marketers have to pay $10 to that search engine. The rule is very simple. Advertisers have to bid enough so that they can secure the first position, visitors will see their advertisement then and interested visitors will click.

PPC advertisement is very fast. A marketer can generate huge traffic within a very short time by opening up an account in Google AdWords. Natural search engine marketing is a time taking process whereas pay per click is very fast and marketers can adjust the advertising campaigns even in hours. Marketers can bargain in PPC advertising. If a keyword has $0.05 as maximum bid then other bidders can increase it a bit to be shown up their advertisement in the first position.

The general thumb rule is simply focusing. Natural search engine marketing takes huge time and this is PR based whereas pay per click advertisement is fast. Marketers need to have very good basic ideas before starting PPC because the profit is all about conversions, not clicks.