PPC Advertising

Pay Per Click (PPC) is an Internet advertising model used on search engines, advertising networks, and content sites, such as blogs, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.

Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.

Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators. Cost per click (CPC), vary depending on search engine and the level of competition for a particular key word or key phrase.

The Role of PPC Advertising

Most businesses can't afford to solely rely on PPC advertising. It's too expensive, and bid amounts inevitably climb. But pay per click can fill a few important roles:

• Campaign- and issue-based traffic: If you have a short-term campaign for a new product, service or special issue, pay per click can be a great way to generate buzz. You can start a pay per click campaign within, at most, 24-48 hours, and you can generally change the text of your ad in mid-campaign, so adjusting your message is easy. If you need to focus attention for a finite amount of time, PPC is perfect.

• Direct-response business: If you sell a product or offer a service that folks can purchase the moment they arrive at your web site, pay per click is a great tool. Online stores are a great example: You know that each click generated is a real potential customer, so spending money to increase the number of clicks makes sense.

• Niche terms: If you are trying to generate traffic for a highly specific keyphrase, PPC can often provide bargains. For example, you might not want to pay the top bid for 'bicycles', but 'Landshark Bicycles' is probably a lot less expensive ($.10 per click as of this writing, actually).

The overall rule of thumb? Focus, focus, focus. Natural search engine optimization is a PR-based, long-term attempt to grow your brand and image. Pay per click advertising, however, should be handled like any other form of paid advertising: Gingerly, and with a clear, quantifiable short- or medium-term goal in mind. In other words, concentrate on conversions, not clicks.