PPC is an acronym for “Pay Per Click.” And that is an advertising model that allows a business or website to display advertisements on other websites, and only pay when a visitor actually clicks on the ad. There are many, many strategies that use PPC pricing, but the most common (and perhaps most profitable) is Google AdWords. Yahoo! Sponsored Search can also be valuable, particularly for those in highly competetive market spaces.
- Okay, but what is it?
PPC is an advertising product. That is, you create advertisements and then pay for them to be displayed. The difference between PPC and more traditional-style internet banner or space advertising is that instead of paying everytime your ad is presented, you pay only when someone actively clicks on your ad. These advertising products are most frequently associated with search engines.Your ad would be displayed whenever someone performs a search for
How does it work?There are several different models for PPC advertising. The most common (and most commonly profitable) is a bid for placement strategy, or one of its variations. Google's AdWords is the most famous of these, although it is really a hybrid.
In its purest form, a bid for placement advertising engine allows you to determine the highest amount you are willing to pay for a click on a particular keyword. If your bid is highest of all the other people bidding on the same keyword, your ad will appear at the top of the listings. So, if I like the keyword "squid puppet" and want people who search for "squid puppets" to find my site, then I would open an account with a PPC engine, and place an ad for Squid Puppets. I would then figure out just what a visit from someone searching for Squid Puppets is worth to me, and set my maximum per click spend.
Let's say, for the sake of argument, that I sell puppets for $20 each. My profit is $10 per unit sold. If I bid $1 for every click I get, then I can break even or make a profit on Squid Puppets if at least one in ten visitors buys one.
Google AdWords' system is much, much more complex than that —but it is still very easy to sign up and start getting visits. Yahoo and MSN also run somewhat similar PPC advertising products. You can find out more about them here:
• Google AdWords
• Yahoo Sponsored Search
• Microsoft Advertising
Or even better, contact me for a personalized consultation.
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