Pay per click (PPC) (also called cost per click) is an internet advertising model ... are used to assess the cost effectiveness and profitability of internet marketing.
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Pay per click marketing, or PPC, is pretty simple: Search engines like Google and Bing allow businesses and individuals to buy listings in their search results.
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Pay Per Click marketing, known as PPC marketing, involves a company or business developing an advertisement for a website or search engine and paying the hosting company a set amount of money every time the ad is clicked. This type of online marketing is available for any business, whether it is based on the Internet or a brick-and-mortar store. Unlike standard advertising, the company doesn't pay anything until the ad is clicked.
An example would be a department store offering a discount for a particular product and creating a PPC ad for a search engine, such as Google or Yahoo! When a person clicks on the ad, they are taken to a site for the department store and the company hopes the searcher buys something.
PPC marketing is a popular form of marketing because of the potential for significant return on their investment. It is a low cost alternative to the more standard methods of advertising, which require significant money upfront with no guarantee of a return.
Anyone Can Do It
It has become a popular method for Internet marketers to get traffic and sales to their sites because of the low cost of the ad. They can set a dollar limit such as $50 or $100 in clicks and then once that limit is met, the ad no longer appears. A simple $100 limit can generate hundreds of clicks to the site and hundreds or thousands of dollars in revenue, depending on the service or product.
Unlike a radio, newspaper or television ad, PPC marketing can be tuned to specific keywords to increase the chances that the ad is being viewed by potential customers. A billboard is seen by anyone walking or driving by, but a company can't control if any of those people are interested in their product. With PPC marketing, they can choose to have the ad displayed for keywords specific to their service or product, increasing the chance that the person searching for the item might click through and purchase. This process is called search engine optimization.
PPC marketing ads can be viewed by millions of people in a short amount of time. Unlike a billboard or radio, which is limited by geography, a PPC ad can be seen by virtually anyone who chooses your keywords. While a billboard may only have access to a few thousands of people per hour, PPC marketing can target millions in the same time.
At an extra cost, PPC ads are placed at the top of search pages, sometimes above the search results. It is estimated that 63 percent of the ads perched at the top spots of search engines get clicked on. PPC marketing placement can significantly increase the likelihood that a searcher will choose one company's ad over another one's, because it is placed further down the page.
While the return on a PPC Marketing plan can be significant, it isn't always the case. PPC is like gambling, in a way, because a company can't know that the person will purchase an item once he clicks over to its webpage. These pitfalls have led many small independent Internet marketers to ruin.
Poor Keyword Choice
While PPC marketing can target people via keyword, choosing the right keyword is an art. If a business chooses a keyword that isn't popular, then it will hardly ever show up on search engines and, thus, never get clicked. Marketing isn't very effective if no one sees the ad. The other issue is choosing a keyword that is too popular. Larger companies with larger bank accounts will pick these keywords and pay premium prices to have their ads placed at the top. This decreases the likelihood of a smaller company's ad getting clicked.
Clicks, But No Sales
There is no guarantee that if someone clicks on an ad they will purchase something on the site. If a company sets their limit at $50, and gets a hundred or so clicks, they still may have never sold a product. The higher the limit, the more clicks and an increased likelihood of purchase. There are marketers that have spent hundreds on PPC marketing and had little to show for it.
A company may have chosen the perfect keywords, and its ad is seen at the top of the search results, but if the ad is boring and not eye catching, then it may not generate much traffic. People only give ads a quick one second look, and if a company wants someone to notice its PPC marketing ad, then it needs to catch that person's eye. That could mean a great picture, interesting tagline or unique product, but without it, the company lowers its chances for a click and, thus, a sale.
There are two primary ways that companies can create a PPC marketing plan: hire a professional PPC company or do it themselves. If the company does it itself, then the cost is simply the cost per click, which can be as low as 10-cents per click to several dollars per click, based on ad preferences and placement. If a company hires a PPC Marketing firm, the cost can be several hundreds or thousands of dollars, depending on preferences. The PPC firm will develop the ads, research the keywords and place them on the search engines in the most efficient way.
Like any advertising campaign, PPC Marketing is a gamble that can bust or pay out significantly. The key to a good PPC marketing campaign is proper keyword research and developing eye-catching ads.
The Internet has grown in popularity at a near exponential rate since its inception and today it has become the most widely used medium for marketing and advertising campaigns. One of the most famous and well-known forms of Internet marketing is known as PPC marketing, or pay-per-click marketing. Online marketers have been using this method to bring awareness to their products and services for more than a decade.
PPC marketing is incredibly advantageous to virtually any business or individual entrepreneur who utilizes the Internet to promote business and business awareness. However, it should be noted that this sort of marketing is not the optimal choice for beginners. To utilize PPC marketing in a way that allows you to enjoy all of its benefits, you must understand search engine optimization techniques and much more.
PPC marketing advertisements can be seen all over search engine result pages as well as other web pages, depending on the PPC marketer's advertising schemes and methods. This type of marketing has become even more competitive in the recent years, so any individual who wants to use this marketing type to their advantage should have a marketing plan or seek professional PPC marketing help to construct a great marketing plan. If you are interested in more important information, Business.com is a great resource for further knowledge on this topic.
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