Pay Per Click Advertising, What Is It Anyway?

Whether you call it Pay Per Click, PPC, Paid Search, or even SEM (Search Engine Marketing), the overall goal is the same: to pay the Search Engines to list your website in their search results. With Pay Per click, you are paying the Search Engines every time someone clicks the link to your website (thus, pay per click).

Where is your link located? Your link is listed in the sponsored links portion of the search results. The location varies by search engine. In Google, sponsored listings are always located on the right side of the search results, and sometimes at the top of the results, too.

Luckily (for small business owners), rankings are not based solely on how much you are paying per click. One of the biggest factors in determining your ranking is your click-through rate. Your click-through rate is determined by how often your ad is showed, divided by how often it is clicked.

At the roots of pay per click marketing (and search engine optimization), are keywords (search phrases.) Proper keyword research will make sure your advertisements target potential clients and customers. If you have a limited budget, it might be a good idea to target more specific queries. Instead of targeting broad terms like, used cars, try targeting a more specific audience (i.e. used cars in Pittsburgh, PA.)

Today, you can even choose what time of day your pay per click ad runs, what country/region/city it displays in, and for how long. Dont want your ad to show on the weekend? No problem. One major concern most advertisers have is going over their budget. You dont need to be concerned. You can set a limit as to how much you want to spend each month, and once you have reached that limit, they will stop showing your ad.

Should you choose pay per click over search engine optimization? If you need fast results, then the answer is yes (assuming you can afford it.) Search engine optimization takes time, while pay per click results are immediate. So if you need to run a seasonal campaign or are about to launch your website, pay per click marketing has an advantage.

The really interesting question is, should you spend money on pay per click if you are already ranking high for the same keyword in the organic results? Anecdotal evidence indicates that multiple listings a couple in the organic results, one in the paid results will increase your conversion and online sales enough to pay for the additional costs of the ad and then some. You should see a positive ROI, but as always, your site is specific to you, and only you can determine what success means.

Taylor Pratt is a Search Analyst (aka SEO) for LunaMetrics, an Internet Marketing Consultant.

Read his latest article on using your analytics to benefit your Internet marketing efforts.

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