subject: PPC Explained [print this page] PPC Explained PPC Explained
One of the most effective methods used by internet marketers is PPC, which stands for "pay per click" advertising.
This all started in the early days of the internet. Google was clever enough to entice advertisers to pay them each time someone would click on their "banner ad." In the begining it was quite cheap, usually only a penny or so per click, and the ads didn't even have to be matching the keywords on the landing page.
Eventually Google had to get more strict about the price because of competition (not every ad can be at the top).
A "Quality Score" was introduced into the equation to make it more fair for everyone. Your ad had to be relevant to the search query or else it would drop out of sight. The relevancy of an ad was determined by how many times it was clicked on per hundred impressions.
Another measure of this scoring system, was that the page the banner ad led to, was also matching in the keywords or at least close (in context) to the subject. The Google bots would examine the page you were "landing on" after you clicked the banner.
Therefore, if very few people clicked on a banner ad, then something was wrong. If a lot of people clicked on your ad, then it would automatically rise higher in the placement position (and your price per click would drop as well).
A true free market system, which has obviously worked very well for Google.
They call their advertising plan "Goggle AdWords," and it is the biggest on the internet.
