Exposing the Mysteries of Pay Per Click
Pay Per Click (PPC) advertising is an excellent way to attract Internet traffic to websites. However, if these systems are poorly managed, they are nothing more than costly advertising ventures that produce few viable results.
PPC advertising uses search engines, such as Google and Bing, to allow individuals and businesses to purchase search engine result listings. These listings generally appear above non-paid search results or are located on the right hand side of the screen. These types of advertisements are sold in an auction-based system, meaning companies have to bid on how much they want to pay each time the ad is clicked. For companies that bid the highest rates, search engines provide them with the potential opportunity for higher placement ads. However, this is also dependent upon achieving a quality score.
The way PPC works is that companies are charged their bid amounts each time the advertisement or link is clicked. For example, if a company bids $0.10 and that’s the highest bid received, chances are it will be placed in the top advertisement. Every time someone clicks the ad, the company is charged per click. In this case, 100 clicks would result in a fee of $10.00.
The downside of PPC advertising is that it can be extremely expensive, especially if the bid prices are competitive. Inflation also increases commonly searched phrase prices. The problem is targeting viable audiences, instead of simply attracting audiences that have no interest in the product being sold or in the company.
The benefits of PPC are that it can generate instant traffic, which results in higher sales. Well-written advertisements can generate more interest than poorly written ads. Fortunately, ads can be adjusted within hours or days, allowing companies to target campaigns that are holiday specific or decrease ads during slow retail times.
PPC can follow several different types of advertising, which includes:
- Issue- and Campaign-Based – Short-term campaigns help generate immediate buzz. Advertisements and text can be changed in the middle of a campaign, making it easier to adjust messages.
- Direct-Response – Online stores often experience the greatest benefits from PPC campaigns.
- Niche – Using certain keyword phrases can be extremely effective for online retailers.
To help maximize PPC benefits, companies should track conversion rates, which includes when customers click, make purchase or inquiries.
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