Pay Per Click (PPC) is an Internet advertising model used on search
engines, advertising networks, and content sites, such as blogs, in which advertisers pay their
host only when their ad is clicked. With search engines, advertisers typically bid on keyword
phrases relevant to their target market. Content sites commonly charge a fixed price per click
rather than use a bidding system.
Websites that utilize PPC ads will display an advertisement when a keyword query matches an
advertiser's keyword list, or when a content site displays relevant content. Such advertisements
are called sponsored links or sponsored ads, and appear adjacent to or above organic results on
search engine results pages, or anywhere a web developer chooses on a content site.
Additional Information
Find below the two models of PPC :
- Flat-Rate PPC Model - In the flat-rate model, the advertiser and
publisher agree upon a fixed amount that will be paid for each click.
- Bid-Based PPC Model - In the bid-based model, the advertiser signs a contract that allows
them to compete against other advertisers in a private auction hosted by a publisher or, more
commonly, an advertising network. Each advertiser informs the host of the maximum amount that
he or she is willing to pay for a given ad spot (often based on a keyword), usually using
online tools to do so. The auction plays out in an automated fashion every time a visitor
triggers the ad spot. Although many PPC providers exist, Google AdWords, Yahoo! Search
Marketing, and Microsoft adCenter are the three largest network operators, and all three
operate under a bid-based model.
- Google AdWords - AdWords is Google's flagship advertising product and main source of
revenue ($16.4 billion in 2007)[1]. AdWords offers pay-per-click (PPC) advertising, and
site-targeted advertising for both text and banner ads. The AdWords program includes local,
national, and international distribution. Google's text advertisements are short, consisting of
one title line and two content text lines. Image ads can be one of several different
Interactive Advertising Bureau (IAB) standard sizes.
- Yahoo! Search Marketing - Yahoo! Search Marketing is a keyword-based "Pay per click" or
"Sponsored search" Internet advertising service provided by Yahoo!. Yahoo began offering this
service after acquiring Overture Services, Inc. (formerly Goto.com). Goto.com was an Idealab
spin off and was the first company to successfully provide a pay-for-placement search service
following previous attempts that were not well received.
- Microsoft AdCenter - Microsoft adCenter (formerly MSN adCenter), is the division of the
Microsoft Network (MSN) responsible for MSN's advertising services. Microsoft adCenter provides
pay per click advertisements.
How can I manage PPC?
PPC campaign management includes the devising of PPC affiliate programs and creation of PPC banners
ensuring increased click-through rates and signups. A pay per click campaign is managed with
afour-fold method:
Search for right keywords: Using the various SEO tools, the search engine optimizer prepares the
list of keywords and related words that help in promoting your business, products and services
Management of PPC bid management: Every business is unique and therefore requires special
attention. For this it is necessary to bid on keywords that will help in accelerating the business
activity. Making Ad copy: It is advisable to make a copy that attracts, informs and coverts the
visitor into a buyer. PPC ROI Tracking and Analysis: from time to time the project delivery manger
provides periodic reports that help in knowing the success of PPC campaign.
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