An Overview of How Pay-Per-Click Works | Unify Interactive, LLC

If you want to direct traffic to your website, you may want to consider the use of pay-per-click. Pay-per-click, or ?PPC?, is one of the most reliable ways of wining traffic to a website and making your Internet presence to be felt.

PPC Basics

In this mode of online advertising, the ad publisher (in most cases, companies like Facebook, Google, Yahoo, etc) is paid by the advertiser the moment an advertisement is clicked. Pay-per-click can be found on many popular search engines but is also used by other sites as well. Advertisers bid on the keyword phrases that are related to the target market and pay based on their bids and how many clicks their ad receives.

A more simple PPC model has a fixed rate per click and does not utilize a biding system. This simplifies the system for both the publisher and for the advertiser but has its downside as well. Fixed-rate PPC is less flexable and doesn?t provide for open market competition the way a bidding system does.

PPC Is Instant

If a website is using the pay-per-click advertising model, the publishing site will automatically display the advertisement the moment a keyword query that matched the keyword of the advertiser is entered. There?s no need to ?ramp up? a PPC campaign like there is for SEO. You simply turn it on and it?s there for the world to see. Of course, the downside to this is that your budget begins to deplete as soon as an ad is displayed as well. Companies new to PPC have a tendency to burn through their first alloted budget in a short amount of time for this very reason.

PPC is Not Scam-Proof

PPC scams have made major players such as Google and Yahoo to take necessary precautions. The fact remains that PPC advertising can be prone to click fraud. Google has implemented automated systems that will guard and prevent abusive clicks. There are also corrupt web developers who pose an existential threat to the use of pay-per-click advertisements. All in all, it remains one of the best ways to drive traffic to site.

PPC is Very Subjective

Irrespective of the source of the traffic, an advertiser needs to consider the overall value of a click to determine the proper amount that should be paid for that traffic. The value of the click varies widely from one industry to the next and is usually based on the expected revenue the advertiser would receive from a successful sale.

The pay-per-click model of advertisement was established in 1998 when Jeffrey Brewer came up with a PPC search engine concept and presented it to a conference in California. The presentation in the conference is what gave birth to what would beocome the modern form of PPC advertisement. Google started allowing advertisers to create as to be placed on the Google search engine in October 2000.

Daniel Ruyter is co-founder of the digital marketing firm Alpha Tree Marketing. Alpha Tree specializes in PPC, SEO and social media for small business.

Source: http://www.unifyinteractive.com/an-overview-of-how-pay-per-click-works

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