The Demystification of Pay Per Click
Pay Per Click or PPC: Online advertising payment model in which
payment is based solely on qualifying click-throughs. In a PPC
agreement, the advertiser only pays for qualifying clicks to the
destination site based on a prearranged per-click rate.
What????? Stop right there. That was about as confusing as
getting computer technical support from a guy named "Ron" who is
clearly talking to you from New Delhi. Of course the word
clearly means his country of origin and not the ability to
understand what he is saying.
The above definition of PPC actually comes from a highly ranked
site that is supposed to help you. You need a better explanation
than that. Pay per click is arguably one of the best ways to
advertise your online wares. It is inexpensive, very targeted,
trackable, and you only pay for visitors who come to your site.
It's pretty close to by gosh advertising heaven.
PPC is based on keywords and more specifically bidding on them.
Keywords are those phrases surfers use when trying to find you
online. If you own a Sandusky, Ohio flower shop, sandusky ohio
florist is without a doubt one of your keyword phrases--maybe!
It may be something much different.
When selecting keywords you have to use terms that have actually
been searched. In using the flower shop example, it would be
pointless to use those keywords if they've never been searched.
So how do you know? There are some excellent online tools to
help you with this including an Overture(now owned by Yahoo)
keyword selector that shows exactly how many people searched for
specific keyword phrases. Take your time. Pick the right key
words and you're ready to begin bidding. A PPC auction, if you
will.
Two of the best PPC options are available from Google and Yahoo.
The methods vary, but the basic premise is the same. You bid for
certain keywords, and what you agree to pay, affects where you
show up in their pages. It's like a silent auction. The big
search engines will tell you exactly how much money it takes to
get ranked high. Some are offering programs for as little as
$5.00. You have full control over how much you'll pay, including
setting a monthly limit. There is no open checkbook with pay per
click.
When your bid and monthly budget has been set, you fill in the
particulars for a predesigned text ad that shows up on search
pages highlighted in the right hand column or top or bottom of
the page. These are pay per click ads. When an interested online
looker clicks on your ad, he is taken to your online site, and
you pay for the visit. Hence the term pay per click. If your bid
is 7 cents, you pay 7 cents for each clickthrough, or new
visitor to your website, ezine or blog.
The pay per click concept is rather simple, and the explanation
given here is basic. It comes down to you having full control
over how much to spend to attract new customers. The benefits
are enormous.
PPC gets you ranked. If you're not on the first two pages of
search engine listings, nobody will find you. A pay per click ad
can land you on the first page, sometimes in a matter of hours.
PPC is inexpensive. Keyword bids start at as little as a penny.
You decide on how much exposure you want and how much to pay for
it. Some of the search engines will even give you a credit to
begin a pay per click campaign.
PPC is trackable. You can keep track of any online ad campaign
by looking at how many people are clicking on your selected
keywords. If you're not getting hits, it's time to change the
bait and select different keywords. If you get lots of hits, but
no takers, it's time to change your online message. Lots of hits
and no buyers means your message is missing somehow.
PPC is targeted. You are placing an ad in front of online
shoppers who already want what you have. You just need to
convince them to spend the money with you. PPC campaigns are
becoming more specialized too by letting advertisers place local
ads or ads on specific websites or directories. Talk about
really reaching out to touch someone.
PPC is a true pay as you go proposition. You have full control
over the amount you'll pay per click and the total budget for a
month. And you only pay for those that actually click through to
visit you. Tell your TV sales rep you only want to pay for your
commercial when someone sees it.
With online buying exploding, and with all the benefits PPC
offers, you should be testing this highly effective advertising
method. It will give you great insight into how customers behave
and react to your messages. Pay per click is not mysterious. It
is a reality of today's advertising marketplace.