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The Demystification of Pay Per Click
by Brian GrinonneauPay Per Click or PPC: Online advertising payment model in which payment is based solely on qualifying click-throughs. In a PPC agreement, the advertiser only pays for qualifying clicks to the destination site based on a prearranged per-click rate.
What????? Stop right there. That was about as confusing as getting computer technical support from a guy named "Ron" who is clearly talking to you from New Delhi. Of course the word clearly means his country of origin and not the ability to understand what he is saying.
The above definition of PPC actually comes from a highly ranked site that is supposed to help you. You need a better explanation than that. Pay per click is arguably one of the best ways to advertise your online wares. It is inexpensive, very targeted, trackable, and you only pay for visitors who come to your site. It's pretty close to by gosh advertising heaven.
PPC is based on keywords and more specifically bidding on them. Keywords are those phrases surfers use when trying to find you online. If you own a Sandusky, Ohio flower shop, sandusky ohio florist is without a doubt one of your keyword phrases--maybe! It may be something much different.
When selecting keywords you have to use terms that have actually been searched. In using the flower shop example, it would be pointless to use those keywords if they've never been searched. So how do you know? There are some excellent online tools to help you with this including an Overture(now owned by Yahoo) keyword selector that shows exactly how many people searched for specific keyword phrases. Take your time. Pick the right key words and you're ready to begin bidding. A PPC auction, if you will.
Two of the best PPC options are available from Google and Yahoo. The methods vary, but the basic premise is the same. You bid for certain keywords, and what you agree to pay, affects where you show up in their pages. It's like a silent auction. The big search engines will tell you exactly how much money it takes to get ranked high. Some are offering programs for as little as $5.00. You have full control over how much you'll pay, including setting a monthly limit. There is no open checkbook with pay per click.
When your bid and monthly budget has been set, you fill in the particulars for a predesigned text ad that shows up on search pages highlighted in the right hand column or top or bottom of the page. These are pay per click ads. When an interested online looker clicks on your ad, he is taken to your online site, and you pay for the visit. Hence the term pay per click. If your bid is 7 cents, you pay 7 cents for each clickthrough, or new visitor to your website, ezine or blog.
The pay per click concept is rather simple, and the explanation given here is basic. It comes down to you having full control over how much to spend to attract new customers. The benefits are enormous.
PPC gets you ranked. If you're not on the first two pages of search engine listings, nobody will find you. A pay per click ad can land you on the first page, sometimes in a matter of hours.
PPC is inexpensive. Keyword bids start at as little as a penny. You decide on how much exposure you want and how much to pay for it. Some of the search engines will even give you a credit to begin a pay per click campaign.
PPC is trackable. You can keep track of any online ad campaign by looking at how many people are clicking on your selected keywords. If you're not getting hits, it's time to change the bait and select different keywords. If you get lots of hits, but no takers, it's time to change your online message. Lots of hits and no buyers means your message is missing somehow.
PPC is targeted. You are placing an ad in front of online shoppers who already want what you have. You just need to convince them to spend the money with you. PPC campaigns are becoming more specialized too by letting advertisers place local ads or ads on specific websites or directories. Talk about really reaching out to touch someone.
PPC is a true pay as you go proposition. You have full control over the amount you'll pay per click and the total budget for a month. And you only pay for those that actually click through to visit you. Tell your TV sales rep you only want to pay for your commercial when someone sees it.
With online buying exploding, and with all the benefits PPC offers, you should be testing this highly effective advertising method. It will give you great insight into how customers behave and react to your messages. Pay per click is not mysterious. It is a reality of today's advertising marketplace.
About the Author
Brian Grinonneau is the general manager of McMann & Tate Advertising, a midwest agency that insists its clients stand out from the crowd and tell their story like it has never been told before. http://www.mcmannandtatesite.com
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