|Top :: Pay Per Click Advertising|
|As with many emerging technologies, PPC are known by several different names and acronyms. Some people call it Pay Per Placement engines (PPP), others call them Bid for Placement engines, and the list goes on.
The industry is now trying to standardize on "Pay Per Click" as the official terminology. The reasoning goes that you do not actually pay for placement. Technically, the positions or listings are free. You pay only for each click (i.e., visitor) that you receive from that search engine listing. The person placing the highest bid per click price for a keyword achieves the highest placement or ranking.
The advantage of PPC's over paying for banner ads is that you do not pay for impressions displayed, but instead for actual click-throughs. With banners, you could purchase 1,000 impressions for $40 and receive only 20 clicks, costing you a whopping $2 per visitor. In general, there's no guarantees how much you'll pay per visitor acquired with most forms of advertising. TV, radio, magazines, and others normally force you to bear all the risk. You must create ads and pick advertising locations that will be cost-effective for your business.
Even though PPC cannot guarantee you'll make a profit, it does offer you significantly less risk than many other forms of advertising. It's also commonly known that visitors from search engines (PPC or otherwise) are much more likely to purchase products or services than visitors derived from traditional ads. Search engines provide you with highly targeted visitors. Each click in theory comes from someone who was actively looking for your products or services.
Paying as little as 1 cent per visitor is dirt-cheap. If you can't make a profit paying 1 cent per visitor, then you may be hard pressed to find many advertising options that will work for you.
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