What is Pay-Per-Click Advertising and How Does it Work?

Posted in Latest From Blog by Steve on February 19th, 2010

What Exactly Is Pay per Click Advertising?

Pay per click advertising is just that. You place ads on the internet through a service or through affiliates. You only pay for the ads when internet surfers click on them, leading them to your sales website.

There are several types of pay per click advertising, and there is no reason that you should not use them all in your internet marketing campaigns. Some pay per click advertising is displayed as sponsored results on search engines and directory web sites. Other pay per click advertising places ads on popular general or related web sites that are often visited by internet surfers that may be interested in your products or services. The final type of pay per click advertising is when you enlist affiliates to place ads on their web sites and pay them when you receive visitors from their site.

How Does Pay per Click Advertising Work?

The details of how pay per click advertising works is based on the type of pay per click advertising that you use. However, there are some basics. First, pay per click advertising is based off of keywords.

When you start a pay per click marketing campaign you choose keywords or phrases that describe your web site, products, and/or services. This should already be done through your initial web site development and search engine optimization techniques. If you do not already have a list of appropriate keywords and phrases, you need to develop an exhaustive list now.

The keywords that you choose to use in your pay per click advertising are important. Not only are these the keywords and phrases that people search for to find your web site and advertising, but they are also what is used to determine the amount you pay for each click that you receive. When you begin to go through your list of possible keywords and phrases, you will find that some of them are much more expensive than others.

Keywords are bid on by internet marketers through the pay per click program. The winning bid receives top placement of their ad. The lower bids receive lower, and therefore less prominent, placement. Each program is different, however, so the amount that you pay per click on one program may not be the same amount that you pay on another program.

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