What is PPC and How Does Pay per Click Work


Pay per Click is an internet advertising model that is used over the web to advertise website and other stuff. Advertisers are entitled to pay their hosts when the ad gets clicked upon. They bid on keyword phrases which concern their target audience and have them placed in the PPC Advertising Campaign. Content based websites usually charge a fixed quote on every click rather than opting for the bidding system. Cost per Click is the amount that the advertiser ends up shelling out to search engines and online publishers for every click made on the advertisement which brings the visitor to the website.

PPC Services follow the affiliate advertising model which provides chances to people whilst surfing. This model is placed into effect by offering financial incentives. It is basically a pay-for-performance model where money is made on every click that comes through. If the affiliate fails to come up with sales, then the advertiser is not entitled to pay anything.

PPC Services and PPC Advertising are all about keywords. The online seller lays his eyes on a certain customer base where he promotes his product and service and advertises to a particular group by biding on certain keywords. These are those strategic keywords that consumers type into the search engines. On search engines such as Google, yahoo or MSN, the end user types in the keyword. The engine directs the end user to the Pay per Click advertisement which has the keyword. The searcher sees the ad, clicks on it and makes the purchase. These ads that represent your online business are known as sponsored links. The advertiser comes into the picture when the searcher clicks on the ad, which entitles the advertiser to pay a certain portion of the total cut.

When the advertisers pay for a certain Pay per Click program, their job does not end there. The number of clicks has to be constantly monitored and most importantly, the fact that how many clicks lead to sale has to be rigorously noted. More the leads your PPC Advertising Campaign generates more are its chances of producing enhanced sales and advanced revenue. The advertiser has to keep a close tab regarding the way PPC Services promote his business. Changes have to be incorporated accordingly and sales cum lead conversions have to be done belligerently.

The bidding for every keyword begins as low as US $0.01 and can go up to as high as US$10.00. The bidding rates can never be decided and all depends upon the popularity of the keywords. If some are in huge demand, the bidding group can increase the quote anytime. Another factor is the number of bidders involved. The more the number, the intense the competition becomes. This is the way in which the PPC concept works. It can be utilized very well and produces favorable results to a large extent. All parties involved in the process are able to make money and the website too gets a lot of exposure.