PPC advertising, also known as paid search, provides the opportunity to purchase listings in search engines for a set of specifically targeted search terms. The advertiser creates the listing, and only pays when a viewer actually clicks through to the advertiser's web site.
Search result pages show between 8 and 11 sponsored listings. Advertisors bid against each other per search term for ad placement. Google and MSN position ads based on the maximum bid an advertisor is prepared to pay and the relevance of the ad and website. Yahoo rank their ads solely on maximum bid per search term. Although, Yahoo impose strict editing guidelines for advert text, exceeding those from Google and MSN.
Not all clicks are equal. The amount you pay for each search term varies depending on the number of competitors who are also targeting the same phrase. The success of a PPC campaign depends on keeping your adverts ranking high while paying less than your competitors.
Unlike many forms of advertising it is possible to monitor the performance of the campaign. This, in the first instance provides feedback into the effectiveness of your adverts in generating traffic. Then using tracking code, determine what proportion of the visitors complete a desirable action, such as submitting an online enquiry form or make an online purchase.
While it is relatively easy to get started, to be viable significant management skills and time is required. Search engine PPC systems require ongoing monitoring, altering, testing and enhancement.