PPC - Pay per click


What is PPC ? PPC or Pay per click is an Internet Marketing Solution or web promotion, offered by all prominent Search engines like Google, Yahoo, MSN etc., where advertisers only pay the providers when a user actually clicks on an advertisement to visit the advertisers' website. According to a recent US study, around 66% web searchers visits the sites listed on the first page, and some can hardly go beyond page 3. Relying only on SEO (search engine optimization) for listing on the natural search results will merely help to grow the business. So there should be some alternatives which allows the advertisers to being listed when and where they want, and pay according to the clients. For instance, lets say you want to advertise your product on TV and pay the channel for only those viewers who visit your business via the ad. That seems very unrealistic, but PPC provide just that! Here the Web world is the TV where PPC providers are the TV channels and the ad is your website, and you only pay for the number of viewers visit to your website.
PPC categories
Sponsored match (or keyword) It involves the display of ads on the search engine result page (on the right hand side)	Content match It involves the display of ads on the publisher's website, newsletters, and emails

In simple words we can say that “PPC is a subset of SEM”. SEM = SEO + PPC


PPC providers
Some of the main players in PPC are: Other types of pay per click programs are also available targeting product or service searches and product comparison sites.
How it works ?
The key ingredient of PPC is the keyword. Picking up the right keyword is a crucial task. In PPC advertising, the text you put in your ad is extremely important. Keywords can be amended on a frequency determined by you and you can set the budget for how much you are prepared to pay per click. Advertisers bid on keyword, phrases relevant to their target market. The advertisement is displayed if the user query matches with advertiser's keyword list, or relevant content. Such advertisements are called a sponsored links or sponsored ads. Lets find out with an example. When we search items on a search engine, we often see some web links on the right side and, one or more links on the top of the page inside a highlighted rectangular box with a couple of lines describing the link, below each link. These results are titled as "sponsored links" or "sponsor results" or simply "advertisements" depending on the search engine you choose. These sponsored links are PPC advertisements.

Rankings are calculated for keyword phrases based primarily on the price that is being paid.
So the more you pay/bid for the keyword, the higher your site will be ranked in the paid search results.
Some sites also generates statistics on a per day, per week, per month basis to make you aware of which keywords are more relevant and should be emphasised in page content.
Tools like Google AdWords provides you to test the market to establish which keywords are likely to generate the most interest.
MSO.net can manage pay per click campaigns on behalf of clients and offer advice as to which keywords are more significant.

Earning with PPC Ads
Suppose you invest $100 in AdWords ads and you pay $1 per visitor or click to Google. If you receive atleast 200 clicks and let 10% of these clicks result in sales, you will make 20 sales, which means 20 new clients. If the average sale amount is $200, you will generate $4000 from $100 in ONE month . In these cases, you can advertise on a larger scale and reinvest the profits into your AdWords budget, which can increase potential profits even more.
So, a basic investment of $100 has a potential to generate sales of $4000

Benefits
Instant traffic on demand. Pay per click advertising generates traffic immediately and is a responsive and fast method for creating buzz for your site. Small initial investment. No monthly minimum spend limit. The search engines don’t charge a fee to place or run your ad. You only pay on the number of clicks. Pay for performance only. If the worst case that your website hasn't been clicked by anyone then you have to pay nothing to the provider. Budget size is up to you. Depending on your investment size and kind of sales, you can set your budget as large or small as you like. Ranking on your hand . If you have a large budget, than paying more your can improve your site ranking on the paid results. Immidiate ROI. Pay per click advertising can give an immediate return on investment - especially if your website can process business/sales online.
Drawbacks
Shares risk with publisher. PPC advertising campaigns must be monitored on a regular basis. PPC advertising is quite expensive as compared to the natural SEO. Not offer economies of scale. The cost per click will stay at the same no matter what your traffic levels are. PPC advertising program is totally money oriented, once you stop paying your as will no longer appear on the listing. PPC favors big business with large marketing budgets.
What should you focus on ?
Establish a sensible budgeting. Spend per click must be less than profit per click (using some rough calculations), and must be reviewed time-to-time to ensure the campaign in still on the right track. Keep track of the clicks to your websites that leads to revenue via the PPC campaign and establish the measurable outcome specific to your organisation that you want to acheive by undertaking the campaign. Avoid the use of large and non-specific terms in the keyword. Visitors generally use 3 to 4 keywords in their search string. Choose keywords most relevant to your content. Search pattern changes frequently, so bid position for keywords and terms must be monitored on a regular basis.
PPC Management Process

Technically, PPC method involves three types of people - The host who carries the advertisement, the advertiser who advertises on the host website, and the visitors who actually vistits the host website.


PPC Account Setup PPC Keyword Research Creative Ads Development PPC Bid Management Landing Page Identification