Home
>
Pay-Per-Click Advertising
>
Buying Your Way to the Top with Pay Per Click Advertising

Buying Your Way to the Top with Pay Per Click Advertising

Imagine if you could advertise ONLY to people who have actually expressed an interest in doing business with you? That's basically what happens whenever a prospective customer or client types a phrase into a search engine that's relevant to your business. But how do search engines decide which sites are worthy of top placement in their search results? It turns out that some of the results are ranked by the search engine's computers while others are simply paid advertisements from companies willing to buy their way to the top using Pay Per Click Advertising.

Pay Per Click Advertising (PPC for short) is an online advertising format that allows you to buy your way to the top of search results pages for search phrases relevant to your business. Businesses buy advertising on specific search phrases, and are then charged each time a person clicks through to their web site.

How does this work?

Try running a search on a major search engine like Yahoo or Google for a common consumer product like "DVD players." When reviewing the results, you'll likely see a set of results labeled as "Sponsor Results" or "Sponsored Link". Some results may appear in the same format as the main search results on the page, while others are listed within colored text boxes along the site of the page. All of those results are paid advertisements from the sites listed within the ads.

The ads are ranked based on how much a business is willing to pay to advertise on each search phrase. In the example search for "DVD players" the current top advertiser is currently paying $0.81 per click ? one penny more than the #2 advertiser.

The ads are purchased through pay per click advertising suppliers, and the two largest happen to be owned by Google and Yahoo. Google's program is called Adwords and displays results on google.com, AOL, Ask Jeeves, many smaller search engines. Yahoo's program is run by an acquired company called Overture, and the results appear on Yahoo, MSN, AltaVista, and many other syndication partners.

Why should I pay for traffic?

For businesses that have had success with search engine optimization, the idea of paying for visitors is not particularly enticing. However, if you can make more money off a visitor to your web site than it costs to get them there, why wouldn't you pay for those visitors? Keep in mind that you can choose exactly what search terms you want to advertise on, and you only pay when a searcher actually clicks on your ad, so it generally comes down to deciding how much you can afford to spend for those visitors rather than whether it's worth doing at all.

How much should I spend?

The main factors influencing how much money can be spent on a PPC campaign are:

1. How many searches are conducted per month using phrases relevant to your business?

2. How much are you, along with your competitors, willing to pay for those terms?

The average monthly ad spend on PPC advertising is a couple thousand dollars, but this varies immensely from less than $50/month for regionally targeted and niche businesses to millions a month by large national retailers.

The goal of any advertising campaign should be to bring in more money from the campaign than it costs to run it. Pay Per Click is no different, but the level of detail you can measure in PPC is significantly higher than most types of advertising. For example, with relatively inexpensive (some are even free) tools, you can determine which ads are generating sales or leads for your business. Beyond that, you can determine how much money you spent on a specific ad to generate a sale or a lead. By measuring what's working, you can aggressively advertise on terms that prove to be winners for your business while shutting down ads that don't deliver.

Tips for Success

1. Advertise on a large number of relevant search phrases. Brainstorm beyond the first dozen terms that come to mind to describe your business. Advertise on the terms used to describe your products, the product names, product codes, and the questions a prospect might type into a search engine that your services answer, and more.

2. Build unique ads for each search phrase. It takes a lot more time to write a unique ad for each search phrase relevant to your business rather than creating one ad for all of your search phrases, but the extra work will definitely be rewarded. Ads that are aligned with the corresponding search term receive more clicks, which will mean more targeted traffic, and in some cases paying less per click (on Google Adwords) due to the intricacies of how the advertising is priced.

3. Send visitors to the most appropriate page of your web site. If you place an ad for a specific product within your online store, don't send visitors to your homepage and force them to dig for what they just searched. This will frustrate your visitors and increase the chance that they'll hit the dreaded Back button.

4. Track your results. Spending money without measuring the return on your investment is not a good business practice. At the very least, consider installing the free tracking tools available through Google Adwords and Overture to measure which terms are delivering results for your business. Beyond that, consider using a 3rd party statistics tool with conversion analysis to compile the results of your various pay per click programs into one easy to manage interface.

Go for it

People are searching for what you sell at this very moment! If your site is not showing up near the top of the results, your competition thanks you.

About The Author

Ed Kohler is the President of Haystack In A Needle, Inc., a web marketing firm in Minneapolis, MN, offering search engine optimization and pay per click advertising consulting services.

google.com

Chicago limo Skokie ..

In The News:

An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.

Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.

A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.

The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.

Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.

Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.

If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.

Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.

Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.

Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.

Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.

The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.

Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.

The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.

Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.

Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.

The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.

The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The FBI is warning the public about a recent phishing scam via text that claims its targets owe money in Pennsylvania for unpaid road toll charges.

Your Apple Music settings may be revealing to your contacts what you're listening to. Kurt "CyberGuy" Knutsson explains the process to change those settings.

Buying Your Way to the Top with Pay Per Click Advertising

Pay-Per-Click Advertising