Pay-Per-Click Advertising

Pay-Per-Click Advertising

Pay-Per-Click Advertising

One of the most widespread methods of drawing targeted traffic to your website is Pay-Per-Click (PPC) advertising. This is also among the most economical and effective direct internet advertising methods, provided it is implemented in the correct manner. The importance of this form of online advertising is reflected in the fact that it accounts for billions of dollars in turnover annually.

How Pay-per-Click Advertising Works

Search engines like Google auction advertising space based on keywords searched by users. The price paid by the advertiser is "per click", i.e. every time a user clicks on an ad, the advertiser incurs a cost. The highest bid for a keyword will gain the ad the top rank in the search engine's listings, displayed on the right side of the search results page. Other ads will be ranked in a descending order of bids.

Having said that, Google has recently made some adjustments to its ranking system for PPC advertising. Now, the highest bid is not always guaranteed the number one position. The 'Quality Score' of the ad is also taken into account to decide the ranking. You ad should be seen as relevant to that particular keyword to get a good quality score. Some look at this as unfair, but others recognize that this process ensures that relevant ads are shown to users. It is now possible to rank well by simply writing relevant and effective copy for a keyword, and not only by placing high bids.

Pay-Per-Click and Affiliate Programs

Affiliate programs work by earning you a commission for directing a visitor to an affiliate website, the visitor subsequently making a purchase. Pay-Per-Click is very helpful here, allowing you to immediately redirect traffic to an affiliate site via your affiliate link without waiting for months to get your site ranked by search engines. It is possible to keep an accurate account of precisely how much is spent on ads compared to the amount of affiliate commissions you are receiving. This has been one of the most attractive features of PPC advertising, as monitoring is a vital part of success in internet marketing.

It must, however, be mentioned that Pay-Per-Click advertising can prove to be quite costly if not implemented properly, from the perspective of an advertiser or an affiliate marketer. If the web traffic you pay for does not produce enough sales, you could have a huge bill to pay at the month-end with nothing really in the way of profit.

That is why it is crucial to first become familiar with the subtleties of PPC campaigns and how you can maximize your return on investment in them. You should also learn about effective monitoring of your campaign so that you know exactly where your money is going and if you are targeting the right set of keywords and customers. There are many online forums where you can seek advice from experts to optimize your campaign. Also look at the guidelines issued by pay per click platforms, such as Google Adwords.

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