Pay Per Click Advertising (PPC) Basics

"Pay per click (PPC) is an Internet advertising model used on websites, where 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."- Wikipedia

The most popular PPC program is Google's 'Adwords,' followed by Yahoo's 'Search Marketing.' It is widely acknowledged as the most effective form of online advertising. PPC is a multi billion dollar industry that is on the rise. Competition for desired keywords can vary greatly depending on your industry, competition and target market.

Setting up and managing a Pay Per Click account/s and campaign/s can take a lot of time and effort but can also result in a great return on investment.

Some terms:
  • PPC- Pay Per Click
  • CPC- Cost Per Click
  • CTR- Click through rate
  • CPM- Cost per thousand impressions
  • ROI- Return on investment
  • Conversion Rate - The percentage of visitors who actually are converted into purchasers of your product/service. It is calculated as the number of click-throughs divided by the number of actual conversions, and the higher the conversion rate, the more effective your campaign has been.

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